Prescience Point Research Group is pleased to release the contents of its sixth research report.
Notes an full report on LKQ Corporation (NASDAQ:LKQ) via Prescience Point
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Prescience Point Believes:
• LKQ Is An Ineffective Roll-up The Company Has Generated No Cumulative Free Cash Flow Adjusted for Acquisitions and Becoming Increasingly Dependent on External Capital to Perpetuate the Illusion of GAAP Profits. LKQ Will Need Larger and Larger Targets to Keep the Growth Game Alive
• Caught in a Massive Margin Squeeze Gross Margins Are In Persistent Decline, and Inventory Accounting Methods Are Likely Blunting the True Problems. North American Organic Growth Very Likely To Be Overstated and Not Reconcilable to Our Research
• Problems With the New Growth Story To Divert Attention from its North American Problems, LKQ Bolted to Europe in Hopes of Spinning a New Growth Story; Our Research Suggests LKQ is Already Facing Problems and Quickly Scrambling to Cover
• Dramatic Overvaluation to Aftermarket Auto, Recycling and Industrial Distributors, and Supported by Sell-Side Analysts’ Failing to Question Assumptions, and Not Considering the Fundamental Problems Facing the Company
• Previous Accounting Fraud and Failures at Waste Mgmt/Discovery Zone Associated With Numerous Members of the Management Team Have Cost Shareholders Billions of Lost $’s in Aggressive Roll-up Strategies