brokers and fidelity management and research

we all know that KAR has potential... we all know that various brokers have over the last few years been promoting KAR on the basis of KAR's potential... some may know that in the last few days, three brokers (UBS, Citi & CSFB) have reiterated their varying degrees of enthusiasm for KAR...

is the announcement of FMR grabbing a 5% stake in KAR a result of the various brokers who like KAR getting into their ear?

most of us will never know if FMR was influenced, but the reality is, there are several brokers - big global brokers, not small Aussie brokers - who are VERY keen on KAR, and if they continue to recommend KAR, then they must have very good reason to do so!

interestingly, FMR's announcement states that they now own 11.215 million KAR shares, and they list purchases of about 0.75 million KAR shares since 20th April 2012. Therefore FMR had already accumulated about 10.45 million KAR shares prior to that date. Connect the dots people, FMR have been in the market building this KAR position for some time - they are probably behind one of the buying bots on KAR.

the question is; "will they continue to build their KAR position?"

maybe, maybe not - time will tell...

regardless, this announcement certainly places any KAR short sellers on notice that there is a big player who is a happy buyer of KAR at current prices - indeed, in FMR's disclosure they state they have snapped up about 0.6 million KAR shares since 19th July alone!!

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