Group 1: Community Banks - Community banks remain a strong investment opportunity due to their local focus and lower exposure to large commercial real estate loans compared to big banks [4][17] - Key metrics for evaluating community banks include capital levels, non-performing assets (NPAs), and book value, with a specific focus on maintaining NPAs below 2% [10][12] - The current environment shows that community banks have low commercial real estate loan losses, indicating their resilience during economic downturns [18][20] Group 2: Regulatory Environment and M&A - The regulatory landscape for banks has shifted, with the current administration being more favorable towards bank mergers and acquisitions, leading to an acceleration in consolidation [26][28] - The previous administration's regulatory stance created a hostile environment for bank M&A, which is now changing, allowing for easier consolidation in the community banking sector [26][28] Group 3: Investment Opportunities - Specific community banks are highlighted as attractive investments, such as NSTS Bancorp, which has a high equity-to-asset ratio and trades at 70% of tangible book value [38][39] - RBB Bancorp is noted for its strong ties to the Korean-American community and is considered a potential acquisition target due to its low trading value and solid fundamentals [43][46] Group 4: Global Value Opportunities - Investment opportunities are also identified in international markets, particularly in Japan and Hong Kong, where companies are trading below book value despite strong fundamentals [70][78] - The focus on intangible assets is increasing, with U.S. corporates deploying significant capital towards R&D and other intangible-heavy investments, indicating a shift in capital allocation strategies [53][55]

Core Viewpoint - An amended securities class action lawsuit has been filed against CarMax, Inc., expanding the class period to include those who purchased CarMax securities between June 20, 2025, and November 5, 2025 [1] Group 1: Allegations Against CarMax - The complaint alleges that Defendants made false and/or misleading statements regarding CarMax's growth prospects, claiming that earlier growth was a temporary benefit due to customer speculation about tariffs [3] - It is asserted that the positive statements made by Defendants about the company's business and operations were materially misleading and lacked a reasonable basis [3] Group 2: Legal Process and Participation - CarMax investors can seek to be appointed as a lead plaintiff representative of the class by January 2, 2026, or may choose to remain absent [4] - The lead plaintiff will act on behalf of all class members and select counsel to represent the class, with the ability to share in any recovery not affected by the decision to serve as a lead plaintiff [4] Group 3: Law Firm Information - Kessler Topaz Meltzer & Check, LLP is encouraging CarMax investors who have suffered significant losses to contact the firm for more information [5] - The firm has a global reputation for excellence in prosecuting class actions and has recovered billions for victims of fraud and corporate misconduct [5]

Core Viewpoint - CarMax, Inc. is facing a class action lawsuit for securities fraud following a significant drop in its stock price, attributed to alleged violations of federal securities laws [2][4]. Group 1: Lawsuit Details - The lawsuit was filed by Bleichmar Fonti & Auld LLP on behalf of investors, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [4]. - Investors have until January 2, 2026, to request to lead the case in the U.S. District Court for the District of Maryland [4]. Group 2: Financial Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, with a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [7]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [7]. Group 3: Stock Price Impact - Following the announcement of poor financial results on September 25, 2025, CarMax's stock price fell by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [8]. - The unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 outlook, led to an additional stock price drop of over 24% [8]. Group 4: Company Operations - CarMax's management had previously emphasized strong demand for its vehicles, which was later alleged to have been artificially boosted by pre-tariff purchases [5]. - The law firm is also investigating whether CarMax adequately assessed its portfolio of car loans following the CEO's departure [6].

Core Viewpoint - Rosen Law Firm is encouraging investors of CarMax, Inc. to secure legal counsel before the January 2, 2026 deadline for a securities class action lawsuit related to misleading statements made by the company during the class period from June 20, 2025, to November 5, 2025 [2][6]. Group 1: Class Action Details - Investors who purchased CarMax securities during the specified class period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [3]. - A class action lawsuit has already been filed, and potential lead plaintiffs must act by January 2, 2026, to represent other class members [4][6]. - The lawsuit alleges that CarMax made materially false and misleading statements regarding its growth prospects, which were based on temporary benefits rather than sustainable growth [6]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company [5]. - The firm has been ranked highly for its number of securities class action settlements and has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [5]. - The founding partner of Rosen Law Firm was recognized as a leading figure in the plaintiffs' bar, highlighting the firm's expertise and reputation in this area [5].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of America's Car-Mart, Inc. due to allegations of materially misleading business information issued to the investing public [1]. Group 1: Investigation Details - The investigation is prompted by a significant stock price drop of 18.2% on September 4, 2025, following the release of first-quarter results that showed a loss of 69 cents per share, compared to a net loss of 15 cents per share in the previous year [4]. - Rosen Law Firm is preparing a class action to seek recovery of investor losses, allowing affected shareholders to potentially receive compensation without any out-of-pocket fees through a contingency fee arrangement [2]. Group 2: Legal Representation - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in recovering hundreds of millions of dollars for investors [5]. - The firm has been recognized for its leadership in securities class action settlements, achieving the largest settlement against a Chinese company and consistently ranking among the top firms in this area since 2013 [5].

Core Viewpoint - An amended securities class action lawsuit has been filed against CarMax, Inc., expanding the class period to include those who purchased or acquired CarMax securities between June 20, 2025, and November 5, 2025 [1] Allegations Against Defendants - The complaint alleges that during the class period, defendants made false and misleading statements, overstating CarMax's growth prospects, which were actually inflated due to temporary factors related to customer behavior influenced by tariff speculation [2] - It is claimed that the positive statements made by defendants regarding the company's business and operations were materially misleading and lacked a reasonable basis [2] Lead Plaintiff Process - CarMax investors have until January 2, 2026, to seek appointment as a lead plaintiff representative of the class, or they may choose to remain absent class members [3] - The lead plaintiff will act on behalf of all class members and select counsel to represent the class, with the ability to share in any recovery not affected by the decision to serve as lead plaintiff [3] Firm Background - Kessler Topaz Meltzer & Check, LLP is known for prosecuting class actions and has a reputation for recovering billions for victims of fraud and corporate misconduct [4]

Company Performance - CarMax has significantly underperformed the S&P 500, with a 56% decline in stock price over the past year compared to a 13% increase in the S&P 500 [3] - Over three years, CarMax's stock has decreased by 43.6%, while the S&P 500 has risen by 68% [3] - In the last five years, CarMax's stock has dropped by 60.5%, against an 86% increase in the S&P 500 [3] Industry Challenges - The used car market has faced numerous challenges since early 2020, including squeezed gross margins and decreased demand due to high vehicle prices [4] - Increased competition from digital-first competitors like Carvana has negatively impacted CarMax's fiscal performance [4] Recent Developments - CarMax's recent stock decline followed worse-than-expected guidance and the unexpected resignation of CEO Bill Nash, effective December 1 [7] - The company has initiated a turnaround plan that includes targeted cost savings of $150 million over the next 18 months [7] Future Outlook - If CarMax's turnaround efforts coincide with improved demand in the coming year, the company could see a return to improved financial results [8] - Currently, CarMax shares trade at a forward P/E ratio of 10, which is below the historical range of 15 to 20 times earnings, suggesting potential for valuation expansion [8] - There is a possibility for CarMax to achieve market-beating returns if profitability improves and valuation expands in the future [9]

Core Insights - Makaira Partners LLC has completely divested its stake in CarMax, amounting to an estimated $18.3 million [1][2][3] - The divestment occurred during a period of significant downsizing for Makaira, with assets under management (AUM) decreasing by 41% quarter over quarter [3][6] Company Overview - CarMax is a leading U.S. retailer of used vehicles, operating over 230 stores and utilizing both physical and digital retail channels to enhance customer engagement [5][8] - The company reported a total revenue of $26.4 billion and a net income of $521.1 million for the trailing twelve months (TTM) [3] - As of November 14, 2025, CarMax's market capitalization was approximately $5.1 billion, with a stock price of $34.43 [3] Investment Context - The decision by Makaira to exit its position in CarMax reflects a broader strategy of reducing holdings in underperforming assets, as indicated by the company's recent struggles and a challenging quarter reported by its CEO [9] - Makaira's portfolio management approach is influenced by a concentrated investment strategy, similar to that of Warren Buffett, suggesting that CarMax was not a high-conviction investment for the firm [9]

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and its senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 FY 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [5]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year, attributed to a "pull forward" in demand due to U.S. tariffs [5]. - Following the financial report, CarMax's stock dropped $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 2025 outlook, led to an additional stock drop of over 24% [6]. Group 3: Company Background - CarMax is a leading retailer of used cars, emphasizing a seamless customer experience and strong demand for its vehicles [3]. - The firm Bleichmar Fonti & Auld LLP, known for representing plaintiffs in securities class actions, is handling the lawsuit against CarMax [10].

Core Insights - Lithia Motors has seen significant interest from institutional investors, with several firms increasing their stakes in the company during the second quarter [1][8] - Analysts are optimistic about Lithia Motors, with multiple firms raising their price targets and maintaining positive ratings [2] - The company reported strong quarterly earnings, exceeding analyst expectations and showing year-over-year revenue growth [4] Institutional Investment Activity - Nisa Investment Advisors LLC increased its stake by 16.9%, owning 276 shares valued at $93,000 after purchasing 40 additional shares [1] - Assetmark Inc. raised its stake by 2.5%, now holding 1,753 shares worth $592,000 after acquiring 42 more shares [1] - Bessemer Group Inc. significantly boosted its holdings by 114.6%, now owning 88 shares valued at $29,000 after acquiring 47 shares [1] Analyst Ratings and Price Targets - Citigroup raised its price target from $385.00 to $399.00, maintaining a "buy" rating [2] - JPMorgan Chase increased its price objective from $320.00 to $350.00, giving an "overweight" rating [2] - Evercore ISI raised its price target from $440.00 to $500.00, assigning an "outperform" rating [2] Financial Performance - Lithia Motors reported an EPS of $9.50 for the quarter, surpassing the consensus estimate of $8.53 by $0.97 [4] - The company achieved revenue of $9.68 billion, exceeding expectations of $9.38 billion, with a year-over-year revenue increase of 4.9% [4] - The return on equity was reported at 13.42%, with a net margin of 2.39% [4] Dividend and Share Repurchase - Lithia Motors declared a quarterly dividend of $0.55 per share, representing an annualized dividend of $2.20 and a yield of 0.7% [5] - The company initiated a share repurchase program allowing for the buyback of $750 million in outstanding shares, indicating management's belief in the stock's undervaluation [6] Company Overview - Lithia Motors operates as an automotive retailer, with segments in Vehicle Operations and Financing Operations, providing a range of services including vehicle sales, parts, repair, and financing [9]