Michael Vellucci

America's Car-Mart Is 23% Overvalued

I recently wrote an article on Credit Acceptance Corporation (NASDAQ:CACC), which I recommended as a short. I believe that the subprime vehicle financing market is coming to a peak and will face significant headwinds going forward. Another company in this industry that I believe is an attractive short opportunity is America's Car-Mart (NASDAQ:CRMT).

CRMT is a retailer and financier of older model used autos. The Company operates in the South-central U.S., with 129 dealerships across 10 states. CRMT differs from CACC in that it has an established retail infrastructure in its dealerships, which fuels the vehicle-financing machine. While its dealerships provide a vertical integration advantage over CACC, CRMT operates in an even lower and therefore more...

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