Carsales.Com Ltd (ASX: CAR), Australia's leading automotive listing site, yesterday won a battle with competitor, Carsguide, for misleading and deceptive conduct.
News Corp's (ASX: NWS) half-owned Carsguide was found by the Supreme Court of Victoria to have engaged in making representations in advertisements which accused Carsales of selling consumers' contact details.
Justice James Judd said, "I find that by making the representations through its advertising campaign the defendant has engaged in conduct that is misleading or deceptive or likely to mislead or deceive the Australian public."
Is Carsales.Com a good buy?
Carsales.Com is the top dog in the local market, and shareholders will be satisfied that the group is taking steps to ensure it maintains its position.
In early afternoon trade today, the market appears enthused by yesterday's news, with its share price trending 0.5% higher.
With a market-leading position locally, wide profit margins, a healthy balance sheet, and exposure to Asia through its strategic stake in iCar Asia Ltd (ASX: ICQ), Carsales.Com Ltd appears a worthwhile investment at today's prices, but only for those with a view to the long term.
