RedChip Independent Issues Fourth Quarter 2007 Research Update On LKQ Corp.


ORLANDO, Fla., April 1, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies Inc., has issued a fourth quarter 2007 research update for LKQ Corp. (Nasdaq:LKQX).

Ekta Bhatia, MBS, RedChip Research Analyst, reported:

"With the acquisition of Keystone, LKQX delivered an outstanding performance in 2007. LKQX consolidated its market as well as internal operations, realizing costs synergies and revenue enhancements. We believe this move will improve gross margins in the coming quarters."

"LKQX incurred substantial cash expenditures for the Keystone acquisition, but we believe the integration creates an immense boost that helps LKQX transition from using new OEM parts to aftermarket products," Bhatia continued.

"The strong influence of insurance companies on repair decisions and rising premium rates has created a highly competitive and price-sensitive market. Given the Company's dominant position in the industry and its acquisition-led business growth amidst a favorable market trend, we believe there is further scope for multiple expansions from its current levels. We continue to maintain our 'Buy' rating on LKQX," she concluded.

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RedChip Companies Inc. is a well-established source of independent research and information on the small-cap market. Dedicated to "Discovering Tomorrow's Blue Chips Today(tm)," its analysts seek out up-and-coming and undiscovered small-cap companies before they show up on Wall Street's radar. To view the full version of this report, to include the investment conclusion and target price, subscribe to RedChip's Research Community online by visiting http://www.redchip.com/visibility/redchipResearchNEW.asp or call 1-800-REDCHIP.

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Disclosure:

The views expressed in this report (which includes the actual rating assigned to the company as well as the analytical substance and tone of the report), accurately reflect the personal views of the analyst(s) covering the subject securities. No part of the analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. The analyst(s) contributing to this report do not hold any share of the subject securities. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. As such, neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities ("related investments"). This publication was furnished on the condition that it will not form a primary basis for any investment decision. Each investor must make their own determination of the appropriateness of an investment in any securities referred to herein based on the legal, tax, and accounting considerations applicable to such investor and their own investment strategy. Any opinions expressed herein are subject to change. The subject security is not a client of RedChip Companies, Inc., or any of its affiliates.



            

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