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Heavy Equipment Insurance
QUESTION:The explosive spike on new online auctioneer GMAI Greg
Manning Auctions, + 11 at 21 after doubling from 5 yesterday on
2M shares- has traders kicking themselves for not discovering this
online auctioneer first.
Online auctioneers continue to move buoyed by EBAY's model;
EBAY 131, MALL 14s, EGGS 12s, ONSL 21- ITEX
jumped to the high 2s and tiny IBCX spiked from 1 3/8 to 3 5/8
yesterday before
falling back.
So are there any other online auctioneers left undiscovered by the
market? Digging harder we came across one that may just
fit the bill. A company that just reported .14 for the last quarter-PE
of 21 -with branches in 48 states.
Insurance Auto Auctions IAAI is the largest provider of
automotive and specialty salvage services in the
United States, providing insurance companies with cost-effective,
turnkey solutions to process and sell total-loss and
recovered-theft vehicles, a $3 billion per year industry. The
company currently has 48 auction sites across the United States.
In September -unnoticed by the market-thinly traded Insurance
Auto Auctions IAAI introduced the first Internet-based
electronic auction of specialty salvage vehicles -called
SpecialtyNet-which makes it easier for customers worldwide to
buy
exotic cars, heavy equipment, large trucks and marine vessels.This
new, advanced capability enables buyers to
electronically register, send sealed bids, manage and track their
bids and view the results.
"Insurance Auto Auctions (IAAI) Introduces SpecialtyNet, a
New Internet Auction for Its Specialty Salvage Division
SCHAUMBURG, Ill., Sept. 1 /PRNewswire/ -- Industry leader
Insurance Auto Auctions, Inc. (Nasdaq: IAAI - news) today
introduced the first Internet-based electronic auction of specialty
salvage vehicles which makes it easier for customers
worldwide to buy exotic cars, heavy equipment, large trucks and
marine vessels. This new, advanced capability enables
buyers to electronically register, send sealed bids, manage and
track their bids and view the results."
''It's another first for IAA in supporting its customers and buyers of
total loss and recovered theft trucks, RVs, upscale
automobiles, earth-moving equipment and boats,'' said James P.
Alampi, chairman, chief executive officer and president.
''With the addition of SpecialtyNet(R) to our expanding suite of
on-line services, including our recently announced
DataLink(R) product, we continue to provide state-of-the-art
systems, which benefit our customers. Our new Specialty
Salvage website provides digital images and detailed descriptions
of the equipment for sale, as well as a complete set of
tools that help customers in developing their bids. "
SpecialtyNet includes an interesting Auto Locater feature which
allows bidders to search current auctions by year,model and
make. The auctions are closed bid only.
ANSWER: Yeah, what is your affiliation? Still IAAI looks interesting,
especially in light of the Internet facet.
Insurance Auto Auctions, Inc. provides insurance companies a solution
for the processing, sale, and payment of total loss, damaged and
recovered theft vehicles. For the six months ended 6/30/98, net sales
increased 8% to $144 million. Net income increased 64% to $3.4 million.
For the 3 months ended 09/30/98, revenues were 70,047; after tax
earnings were 1,563.
Results reflect an increase in sales, the Company's decision to
renegotiate or terminate specific, unprofitable purchase agreements and
a decrease in debt.
Looks on track with good management. P/e is not out of line, and they
are profitable... With a 2.2% margin. Not too many shares short,
though more than I like to see. Range bound for the last two years,
but used to be a $30 stock. Could the Internet break them out? Looks
likely to me.
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