CAI Int'l Staying Contained

Founded in 1989, CAI International, Inc. (CAP - Snapshot Report) is the one of the world's largest intermodal container leasing and management company, with roughly a 6% market share of the worldwide leased container fleet. This consists of standardized steel boxes used to transport cargo by a number of means, including ship, truck, and rail.

We are maintaining our diluted EPS estimates at $1.31 for 2008 and $1.35 for 2009. Results will likely reflect weaker container utilization amid the growing recession as roughly one-fourth of the company's equipment base is on short-term hire (a portion of which might not be released) and lower equipment gains due to reduced sales, partly offset by the acquisition of Consent
Equipment.

We are continuing our Hold on CAI International, but cutting our target price to $3.25. CAP pays no common dividend.

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