Company Overview - Copart, Inc. (NASDAQ:CPRT) operates an online vehicle auction and remarketing platform, primarily serving insurance companies, banks, and rental car companies to process and sell salvaged vehicles through digital auction tools [2]. Market Performance - Copart was highlighted as the fourth worst-performing stock in the Nasdaq-100, experiencing a decline of approximately 32% last year due to losing market share [1]. - The stock is currently trading at over 23 times this year's earnings estimates, indicating it is not considered a bargain at this time [1]. Competitive Landscape - The online auction sector for vehicles is characterized as a duopoly, with Copart being the larger and better-managed player compared to its main competitor, IAA, which has become more aggressive in pricing after being acquired by RB Global [2]. - A national insurance carrier has switched to IAA, further impacting Copart's market share [2]. Financial Performance - Copart's revenue and earnings growth have decelerated to just below 10% in the past 12 months, attributed to a spike in auto insurance leading to an increase in uninsured and under-insured motorists, which has reduced volumes through Copart's insurance vertical that accounts for 80% of its revenues [2]. Investment Decisions - Qualivian Investment Partners sold their position in Copart and initiated a new position in Brookfield Corp, citing the less rational competition and weakening fundamental backdrop as reasons for exiting [2].

Investment Strategy - Investors should focus on owning high-quality stocks and holding them long-term rather than engaging in frequent trading based on market volatility [1][2] - The emphasis is on managing personal investments and leveraging the power of compounding through individual stock ownership alongside index funds [2] Market Insights - Cramer advises investors to concentrate on stocks that open flat or decline early in the trading session, as these conditions may present buying opportunities at lower prices [3] - The importance of price-to-earnings (P/E) ratios is highlighted, with plans to educate investors on its significance for identifying potential upside in 2026 [3] Stock Analysis - PayPal Holdings, Inc. (NASDAQ:PYPL) is noted for its significant decline of over 31% last year, attributed to commoditization of its services and slow adaptation to new technologies, yet it remains a cheap stock at 10 times this year's earnings estimates [8] - Copart, Inc. (NASDAQ:CPRT) has faced a 32% drop due to market share loss, with its current valuation at over 23 times this year's earnings estimates, making it less attractive for investment at this time [9]

Core Insights - The analysis emphasizes Copart, Inc. (CPRT) as a high moat business with strong cash-generating capabilities and competitive advantages, suggesting it will remain viable for the next decade [1] - The investment strategy focuses on achieving at least 15 percent annualized returns, targeting companies with deeply discounted prices relative to their asset base, provided they are marketable [1] - The analyst has achieved an annualized time-weighted return of approximately 16 percent over three years and aims to continue outperforming this benchmark [1] Company Analysis - Copart, Inc. is highlighted as a strong investment opportunity due to its robust business model and market position [1] - The company is considered a potential takeover target, but it is essential that it maintains a strong business foundation regardless of the outcome of any acquisition attempts [1]

Core Insights - The analysis emphasizes Copart, Inc. (CPRT) as a high moat business with strong cash-generating capabilities and competitive advantages, suggesting it will remain viable for the next decade [1] - The investment strategy focuses on achieving at least 15 percent annualized returns, targeting companies with deeply discounted prices relative to their asset base, while also considering takeover targets that maintain strong business fundamentals [1] - The author has achieved an annualized time-weighted return of approximately 16 percent over three years, indicating a successful investment track record [1] Company Analysis - Copart, Inc. is highlighted as a business with a significant competitive edge, making it a strong candidate for long-term investment [1] - The focus on cash generation and marketability of assets is crucial for identifying potential investment opportunities [1] Investment Strategy - The investment approach prioritizes companies with strong fundamentals and a clear path to achieving substantial returns, while also being open to the possibility of acquisitions [1] - The strategy is designed to ensure that investments are sound even if takeover scenarios do not materialize [1]

Group 1: Fund Performance - Qualivian Investment Partners outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 69.2% and 61.3% on a gross and net basis since inception through September 30, 2025 [1] - The fund exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis [1] Group 2: Copart, Inc. Overview - Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services company with a one-month return of 0.77% and a 52-week loss of 33.41% [2] - As of December 22, 2025, Copart's stock closed at $39.36 per share, with a market capitalization of $38.1 billion [2] Group 3: Investment Strategy - Qualivian Investment Partners sold its position in Copart, Inc. and initiated a new position in Brookfield Corp. [3] - The online auctions sector is characterized as a duopoly, with Copart being the larger and better-managed player compared to IAA, which has become more aggressive in pricing due to its acquisition by RB Global [3] - The increase in uninsured and under-insured motorists has led to a deceleration in Copart's revenue and earnings growth to just below 10% in the past 12 months [3] Group 4: Hedge Fund Interest - Copart, Inc. was held by 59 hedge fund portfolios at the end of the third quarter, a decrease from 61 in the previous quarter [4] - There is a belief that certain AI stocks offer greater upside potential and carry less downside risk compared to Copart, Inc. [4]

Group 1: Aoris International Fund Performance - Aoris International Fund's Class A (Unhedged) returned -2.6% after fees in Q3 2025, while the benchmark MSCI AC World Accumulation Index ex Australia rose by 6.5% in AUD [1] - The fund's Class C (Hedged) declined by 1.0%, compared to an 8.0% return for the benchmark [1] - Global equity markets experienced an 8.0% gain in local currencies, but currency fluctuations reduced the AUD return by 1.5% [1] Group 2: Copart, Inc. Overview - Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services company, with a market capitalization of $37.966 billion as of December 18, 2025 [2] - The stock's one-month return was -3.71%, and it lost 32.63% of its value over the last 52 weeks [2] Group 3: Competitive Landscape and Investment Decision - Aoris International Fund expressed concerns about Copart's competitive strengths and long-term growth prospects due to IAA Inc. regaining market share after improving its operating performance [3] - As a result, Aoris sold Copart from its portfolio in early July 2025 [3] - The fund noted that while Copart has investment potential, certain AI stocks are perceived to offer greater upside potential and less downside risk [4]

Core Insights - Copart, Inc. (CPRT) reported a 0.7% decline in revenue and a 6.7% drop in unit volume for the first quarter of fiscal year 2026, which surprised shareholders [1] Financial Performance - Revenue decreased by 0.7% in Q1 FY 2026 [1] - Unit volume fell by 6.7% during the same period [1]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2] - A specific company is positioned as a critical player in the AI energy landscape, owning essential energy infrastructure assets that will benefit from the increasing demand for electricity driven by AI [3][7] Investment Opportunity - The company in focus is not a chipmaker or cloud platform but is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses significant nuclear energy infrastructure, making it integral to America's future power strategy and capable of executing large-scale energy projects [7] - The company is noted for being debt-free and holding a substantial cash reserve, which is nearly one-third of its market capitalization, positioning it favorably compared to other energy firms [8] Market Position - The company has an equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth engines in the AI sector without the associated premium costs [9] - It is trading at less than 7 times earnings, indicating a potentially undervalued investment opportunity in the AI and energy sectors [10] - The company is recognized for delivering real cash flows and owning critical infrastructure, making it a solid investment choice amidst the AI revolution [11] Future Trends - The ongoing influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI [12] - The article emphasizes that the future is powered by AI, and immediate investment is encouraged to capitalize on this trend [13] - The convergence of AI infrastructure, onshoring, and a surge in U.S. LNG exports is framed as a supercycle that investors should not overlook [14]

Core Insights - The industrials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, with values below 30 indicating potential buying opportunities [1] Company Summaries - **Copart Inc (NASDAQ: CPRT)**: Reported worse-than-expected first-quarter sales results, leading to a stock decline of approximately 9% over the past month. The current RSI value is 28.7, with shares closing at $38.85 [7] - **Wheels Up Experience Inc (NYSE: UP)**: Posted a third-quarter loss of 12 cents per share, compared to a loss of 8 cents per share a year ago. The stock has fallen around 51% over the past month, with an RSI value of 27.7 and shares closing at $0.62 [7] - **Mobile Infrastructure Corp (NASDAQ: BEEP)**: Reported disappointing quarterly results, with a stock decline of about 24% over the past month. The current RSI value is 24.2, and shares closed at $2.57 [7]

Core Insights - The industrials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Copart Inc (NASDAQ:CPRT) has an RSI of 28.7, with a stock price decline of approximately 9% over the past month, closing at $38.85 [7] - Wheels Up Experience Inc (NYSE:UP) has an RSI of 27.7, experiencing a significant stock price drop of around 51% over the past month, closing at $0.62 [7] - Mobile Infrastructure Corp (NASDAQ:BEEP) has an RSI of 24.2, with a stock price decrease of about 24% over the past month, closing at $2.57 [7] Group 2: Company Performance - Copart reported worse-than-expected first-quarter sales results, with a 52-week low of $38.61 [7] - Wheels Up Experience reported a third-quarter loss of 12 cents per share, compared to a loss of 8 cents per share a year ago, with a 52-week low of $0.59 [7] - Mobile Infrastructure's third-quarter performance was stable, with contract parking volumes increasing by 1.4% sequentially and 8.0% year-to-date, despite a 52-week low of $2.52 [7]