FENX

Fenix Parts Inc

Industrial/Transportation


Presented:10/27/2015
Price:$7.51
Cap:$0.09B
Current Price:$0.40
Cap:$0.01B

Presented

Date10/27/2015
Price$7.51
Market Cap$0.09B
Ent Value$0.11B
P/E RatioN/A
Book Value$6.08
Div Yield0%
Shares O/S11.39M
Ave Daily Vol137,608
Short Int14.42%

Current

Price$0.40
Market Cap$0.01B
Fenix Parts, Inc. engages in the recycling and resale of original equipment manufacturer automotive products in the United States and Canada. Its primary business is auto recycling, which is the recovery and resale of insurance quality OEM parts, components and systems reclaimed from damaged, totaled or low value vehicles. The company sells recycled OEM products to collision repair shops, and mechanical repair shops, auto dealerships and individual retail customers through centralized distribution facilities. Its recycled OEM products include mechanical parts used to repair worn or damaged components, such as engines and transmissions, and collision repair parts used to repair vehicles typically involved in a collision, such as door assemblies, trunk lids, lights, fenders and other products. Fenix Parts was founded in January 2014 and is headquartered in Miami, FL.

This idea was presented at the Excellence in Investing Conference, San Francisco on 10/27/2015.
Publicly traded companies mentioned herein: Fenix Parts Inc (FENX), LKQ Corp (LKQ)

Highlights

The presenter sees Fenix Parts (FENX) as an attractive small cap investment opportunity. He believes the company is in good position to make strategic acquisitions in the highly fragmented used parts business and improve operational efficiency. The “large and stable” US parts business is estimated at $61b, and he thinks we are entering a sweet spot since US light vehicles are increasing in number while also hitting the prime 3 - 8 year age range, which typically sees increased demand for repairs and parts. He believes this will be a large industry tailwind for the coming years, and if FENX follows the same strategy executed by LKQ, shareholders could see upside to $16 (from ~$8) over the next 12-18 months.

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