Used Cars Anyone? CarMax Inc. (Ticker: KMX)

Not every stock I buy has to be super interesting. They do need to have a growing revenues or at least good prospects, and I like a lot of cash on the books with low debt. A new product that is in demand or great management helps too. But I guess the most important aspect is a chart that is compelling, breaking out of a sound base, or a new high on big volume. That’s where CarMax Inc. (Ticker: KMX) comes in. It looks as if it’s about to break to a new high any day, their quarterly revenue growth has been gaining just under 20% year over year, but quarterly earnings growth, year over year has been 53.5% higher. The stock has been consistently showing up a scan I designed I call my CANSLIM II scan. It searches for stocks that have the attributes the legendary trader William J. O’Neil looked for and history showed stocks had before they made huge moves for their owners. Just the same, if you buy it, use good money management and sell it if it goes down by a predetermined amount. Not every stock goes the way we want.