Ive done well with a number of stocks like PBY where mergers fall thru and the stock tanks and it later gets sold at a much higher price.
I used to think that Exxonwould buy PBY out. But no longer.
Pepboys has demonstrated that they know not how to run their business.
No dividend to the shareholders for 5 and 1/2 years.
Losing money right now - fairly good economy, lots and lots of cars on the road needing stuff.
CEOs roll and and CEOs roll out == no improvement in performance of company and stock is stagnant.
Firmly advocate selling this now -- take the money and by CVX or WMT that are huge and have a solid track record of increasing dividends and do in fact go up over time.
As an investment -- don't waste your time waiting and hoping on Pepboys.
and given that a number of potential strategic and financial buyers have expressed an interest in discussing a transaction with Pep Boys, we have determined that it is prudent to explore strategic alternatives to determine the best opportunities for enhancing shareholder value at this time.”
which is impressive given that the stock has still went up.
Interesting how they switched back to a 13g and then dumped their stock.
At $12.50, Id say its got as much downside as upside. Roughly $2.50 in each direction.
I have not sold any.
I own pby ... Unfortunately last year their weakest quarters were next 2 qtrs (missed by 100%/qtr) let's hope they don't repeat last year's blowup, but from what i'm hearing from my uncle who works at pby hdqtrs, they see this seasonal fall off every year, this year's no different. maybe a little worse. i'm looking to sell prior to the report.
Just added up his two year severance if they get bought out.....$5.12 million+benefits. He gets $800K salary, $800K bonus and $960K in stock grants per year times two years if company gets bought out. Easily $6-7 million plus benefits. Doesn't look to me they look to get bought out. S&P just updated their rec on PBY with a price target of $14. They came to that number based on 33X earnings for 2017. We haven't even finished 2015 yet. They are nuts.
I have had dealings with the new CEO. I think you will be pleasantly surprised at his breadth and capabilities.
It's almost automatic and could be well over $5 million. Normal severance is two years pay, two years max bonus, two years insurance, two years all other benefits and automatic immediate vesting of all options and restricted stock. Could well be $10 million+......severance for CEO about two back was around $7 million if memory serves. DaninFW
I thought it was 3 out of 10 since two are going away. The article I read had four with Mitaratonda(sp?) likely to join the 3 new ones since he runs a hedge fund and was elected to the BOD's under same circumstances years ago. The Pirate Hedgie left. The new CEO is a joke. Hertz only did oil and fluid changes and sold any rental cars before they needed any real repairs or even new tires. He will get at least a $5 million severance if company gets bought out. That's 10 cents a share less shareholders will get in a buyout as that will be a factor. Tells me nothing close to a buyout coming. DaninFW
its 3 of 12 with the new ceo.
25% of the board for 19% of the shares.
not thrilled with the new ceo, but I guess he is better than nobody.
But it could take up to 12-18 months.
I could see it falling back to $11 as the market realizes it might not be a quick sale.
But Im not willing to sell my shares over it because there is more upside than downside.