Cleanup on Aisle 6 - LKQ!? + 3rd Quarter Performance

I finally had a chance to watch the LKQ investor day presentation. I was mildly underwhelmed. I want to own this stock, but did not get a clear message of where the growth was going to come from.

It is clear the new CEO badly wants to do some divestitures, and stop making silly acquisitions. But all I got was a “cleanup story”. The most important thing I learned was that the LKQ considers the automakers as his biggest competition. The game is trying to get insurance companies to use salvage parts, rather that OEM parts. I am not sure I love the concept of having big stupid competitors. I am still “wait and see” of LKQ. Right now its is my 21st best idea.

I still worry about FirstCash’s point of sale business, and I am also concerned that Treehouse, Revvity, and Kinder Morgan have run a little too fast. Right now I am paralyzed. Let’s see some quarterly results before making any portfolio changes.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

I am required by law to report performance numbers and discuss them. The Model Top 20 was in the middle of the range. First Eagle did worse at 5%, some of the smaller cap funds did better at 10%. I guess the more “momentum” you owned, the better you did. Many of the. small banks rallied hard, that is why the small cap indexes were so strong. My small Iowa bank, MOFG went from $21 to $28 in two weeks on no news.

The S&P 500 was an easy index to beat when the small caps bounced in July.

My bad stocks where Chart Industries, Halliburton, and Nutrien.

SPJ Top 20 Model +8.1%

S&P 500 +5.6%

S&P 500 equal weight - RSP +6.5 %

Morningstar large cap index +5.5%

Morningstar large cap value index +8.3 %

Morningstar mid cap value index +9.6%

Morningstar small cap value index + 9.9%

First Eagle Small Cap - FESCX +5.3%

Diamond Hill Small/Mid Cap - DHMIX +8.3%

Victory Sycamore - VSOIX +7.1 %

T Rowe Price Mid Cap Value - TRMCX +8.0 %

Longleaf Partners (Mason Hawkins) - LLPFX +10.4 %

Van Eck/Morningstar Moat ETF - SMOT +9.6%

Royce Small Cap Value - RVT +10.5%