Core Viewpoint - Rosen Law Firm has filed a class action lawsuit on behalf of CarMax, Inc. securities purchasers during the specified Class Period, alleging that the company made materially false and misleading statements regarding its growth prospects [1][5]. Group 1: Lawsuit Details - The class action lawsuit pertains to securities purchased between June 20, 2025, and September 24, 2025 [1]. - The lawsuit claims that CarMax's growth was overstated due to temporary factors, specifically customer purchases driven by speculation about tariffs [5]. - Investors are encouraged to join the class action without incurring out-of-pocket fees through a contingency fee arrangement [2]. Group 2: Next Steps for Investors - Interested investors can join the class action by visiting the provided link or contacting the law firm directly [3][6]. - A lead plaintiff must be appointed by January 2, 2026, to represent the class in the litigation [3]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including over $438 million for investors in 2019 [4]. - The firm has been recognized for its success in securities class action settlements, ranking in the top 4 since 2013 [4].

Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector.Sign up today for your two-week free trial and get a new lease on oil & gas! ...

Core Insights - The Optimist Fund achieved a return of +9.1% in Q3 2025, significantly outperforming its benchmark [5] - The fund's year-to-date return stands at 44.5%, compared to the benchmark's 11.1% [5] - The fund anticipates continued growth opportunities over the next three and a half years, similar to recent performance [4] Fund Performance - The fund's performance over various periods shows significant volatility, with a notable recovery from a -51.4% return in 2022 to 82.9% in 2023 [5] - Compound returns as of September 30, 2025, indicate strong performance across 1-year (61.2%), 2-year (65.6%), and 3-year (61.9%) periods [5] Top Contributors - **Wayfair**: Revenue increased by approximately 5% year-over-year to $3.27 billion, marking its fastest growth since Q1 2021. Adjusted EBITDA reached $205 million, indicating a margin above 6% for the first time since Q2 2021 [7][8][9] - **ThredUp**: Revenue rose 16% year-over-year to $77.7 million, with adjusted EBITDA increasing by around 100%. Active buyers grew by 17% to 1.47 million [10][11][12] - **Carvana**: Retail units sold increased by 41% year-over-year to 143,280 vehicles, with total revenue rising 42% to $4.84 billion. Adjusted EBITDA reached $601 million, reflecting a 12.4% margin [13][14][15] Top Detractors - **Monday.com**: Despite a 27% increase in revenue, the company reduced its second-half 2025 revenue guidance due to weaker performance marketing trends, causing investor concerns [20][21][22] - **Fiverr**: Results were below expectations, leading to a reduction in position size despite maintaining an attractive risk/reward profile [25][26] Portfolio Composition - The top 10 holdings comprise approximately 85% of the portfolio, including ThredUp, Monday.com, Carvana, Uber, Wayfair, DoorDash, First Advantage, Fiverr, Latham Group, and Medpace [27] Notable Changes - The fund exited positions in HelloFresh and Revolve due to management changes and reduced confidence in growth prospects, reallocating capital to more promising opportunities [29][30] Company Insights - **Medpace**: A leading contract research organization (CRO) focused on small and mid-sized biotech companies, showing strong revenue growth of 14.2% year-over-year to $603.3 million [31][18][35] - The company has a disciplined capital allocation strategy, with a history of share repurchases during market downturns, enhancing long-term growth potential [34][35]

Core Insights - Lithia UK has confirmed the acquisition of Hatfields Group, which includes four Land Rover sales sites and one OMODA JAECOO store, marking Lithia's first representation of the Chinese brand in the UK [1][4] - The acquisition increases Lithia UK's Land Rover locations to 11, enhancing its presence in the North of England with operations in Hull, Liverpool, Pickering, and Shrewsbury [2][6] - The Hatfields brand will be retained, and all staff will remain in their positions, with the OMODA JAECOO store transitioning to Lithia's Evans Halshaw division [4][5] Company Strategy - The acquisition is part of Lithia's regional growth strategy, expanding its representation of luxury brands such as Range Rover, Defender, Discovery, and Jaguar [6] - Paul Westaway, Managing Director of Hatfields, emphasized that the acquisition enhances access to top-performing luxury car brands across the UK [3] Market Impact - Patrick McGillycuddy, Managing Director of JLR (UK), described the acquisition as a significant expansion of Lithia's retail footprint, reflecting confidence in JLR's portfolio [4] - The addition of the OMODA JAECOO site introduces a new OEM partner, Chery, which is recognized as a fast-growing global automotive brand [5]

Core Viewpoint - CarMax, Inc. experienced a significant stock decline of nearly 20% following the unexpected increase in loan loss provisions in its CarMax Auto Finance segment, raising concerns about the quality of its loan portfolio [1][6][7]. Financial Performance - The second-quarter 2026 financial results revealed a loan loss provision of $142 million, marking a sequential increase of nearly 40% and a year-over-year rise of approximately 24% [6]. - CarMax's financial results missed analysts' consensus estimates for GAAP EPS and revenue, primarily due to the increased loan loss provision [6]. Management Assurances - Prior to the Q2 2026 report, management had stated during the first-quarter 2025 earnings call that the provision of $101.7 million would likely be the "high watermark" for the year, expressing confidence in the reserve adjustments made [5]. - The recent provisioning increase contradicted these earlier assurances, as management acknowledged deteriorating credit trends that had begun to emerge in Q1 [7]. Investigation and Legal Actions - Hagens Berman, a national shareholders rights firm, has initiated an investigation into whether CarMax misled investors regarding the quality of its loan portfolio [2][3]. - The investigation is focused on the propriety of CarMax's disclosures about the quality of its loan portfolio, which includes older vintage loans and new originations [3][8].

Economic Data Overview - Initial jobless claims fell to 218,000, better than the expected 235,000, indicating a strong labor market [1] - Durable goods orders increased by 2.9%, surpassing consensus expectations, with non-defense business investment rising by 0.6% [2] - The second quarter GDP growth was reported at 3.8%, significantly higher than the anticipated 3.3%, suggesting robust economic activity [2] Consumer Behavior and Market Dynamics - Despite positive economic indicators, consumer sentiment appears mixed, with CarMax's stock plummeting 25% after missing revenue and earnings expectations, raising concerns about auto loan debt [3][4] - The housing market shows a disparity, with sales of million-dollar homes increasing while properties priced below $500,000 struggle [4] Inflation and Federal Reserve Considerations - The market is concerned about inflation, with discussions on whether the Federal Reserve should adjust interest rates in response to economic data [5] - The current economic environment is characterized as a two-tier economy, influenced heavily by asset markets, with a noted slowdown in consumer spending earlier in the year [6][7] - The cumulative number of unemployed workers has risen nearly 25% from its cycle low, indicating ongoing labor market challenges [9] Asset Prices and Inflationary Pressures - The significant rise in the S&P 500, up 85% over the past three years, is contributing to inflationary pressures, as wealth effects trickle down to consumer prices [11][14] - There is skepticism about a sustained high baseline inflation, with the potential for a downturn in stock prices to alleviate inflationary concerns [16]

Economic Overview - The U.S. economy grew by 3.8% in Q2, surpassing the previous estimate of 3.3% [1] - Economic growth is outpacing elevated inflation significantly, according to Northlight Asset Management [4] - New orders for durable goods increased by 2.9% in August after two months of declines [4] Stock Market Performance - Major U.S. equity indexes extended their losing streaks to three days, with the Dow Jones down 0.4%, S&P 500 down 0.5%, and Nasdaq down 0.5% [7] - The S&P 500 is currently more than 2% above the average year-end analyst forecast [4] Company Highlights - IBM's stock rose by 5.2% after HSBC reported using its quantum computers for bond market predictions, achieving a 34% improvement over classical methods [8] - Intel's stock surged by 8.9% amid reports of soliciting an equity investment from Apple, with a year-to-date increase of 69.5% [8][9] - CarMax's stock fell by 20.1% after reporting Q2 earnings of 64 cents per share, below the consensus estimate of $1.04, and same-store sales declined by 6.3% [10] - Lithium Americas' stock increased by 22.3% as it discusses an equity stake with the Trump administration, linked to a $2.26 billion loan for its Thacker Pass mine [12][13]

Market Overview - The market opened mixed, with the Dow dropping -316 points (-0.70%) after a +500-point gain the previous day, while the S&P 500 and Nasdaq saw modest increases of +0.07% and +0.18% respectively [1] - The small-cap Russell 2000 index fell -1.3% [1] Services & Manufacturing PMI - The S&P Services PMI for July was reported at 55.2, exceeding expectations of 53.2 and the previous month's 52.9, marking the highest level in 2025 [2] - In contrast, the S&P Manufacturing PMI fell to 49.5, below the anticipated 52.7 and the previous month's 52.9, indicating a decline in new orders for the first time this year [3] Earnings Results - Intel reported Q2 earnings with a loss of -$0.10 per share, missing the expected +$0.01, while revenues were $12.9 billion, surpassing the consensus of $11.87 billion [4] - Intel's guidance for Q3 includes revenue expectations of $12.6-13.6 billion but forecasts earnings of $0.00 per share, down from the expected 2 cents, and announced a further -15% workforce reduction [5] - Deckers Outdoor exceeded earnings expectations with 93 cents per share against estimates of 68 cents, and revenues of $965 million, a +17% increase year-over-year [6] - Despite a +20% surge in shares post-announcement, Deckers' stock is still down approximately -40% year-to-date [7] Upcoming Economic Indicators - Durable Goods Orders for June are anticipated to show a negative swing, with estimates at -11%, following erratic behavior influenced by tariff policies [8] - Q2 earnings reports are expected from Phillips 66 and AutoNation, with major companies like Microsoft, Apple, and Amazon set to report next week [9][10]