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BancAmerica Robertson Stephens Initiates Coverage on CarMax Group

11 November 1997

BancAmerica Robertson Stephens Initiates Coverage on CarMax Group

    SAN FRANCISCO, Nov. 11 -- BancAmerica Robertson Stephens
research analyst Jordan Hymowitz initiated coverage today on CarMax Group
with a Market Performer rating based on the company's high
valuation at present.  CarMax sells for 70x his fiscal year 2000 EPS estimate
of $0.20.
    CarMax is the original used car superstore chain.  The company was spun-
out from Circuit City in 1996 and currently operates 12 superstores in six
states.  The company plans to have 33 stores operational by February 1998.
Each CarMax location retails 500-1,200 low-mileage, one-to-five-year old
vehicles in a no-haggle environment.  All vehicles are sold fully
reconditioned with a five-day money back guarantee and 30-day bumper to bumper
warranty.
    CarMax also retails older vehicles from a separate "Value Max" section of
its retail sites.  The company also acquires under-performing franchises of
new car dealers and relocates them to existing CarMax stores.  Hymowitz
believes this new vehicle strategy will be successful.
    BancAmerica Robertson Stephens is a leading international investment
banking firm, focused on emerging growth companies.  The firm's 45 research
analysts cover over 500 companies.

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