One has to question why PBY has gone up with the barage of downgrades last 2 weeks: DaninFW
Columbine Capital Services, Inc. downgrades PEP BOYS MAN MOE from NEUTRAL to UNFAVORABLE. Investars Analyst Actions - private – 03/07/2010 On March 6, 2010 Columbine Capital Services, Inc. downgraded PEP BOYS MAN MOE from NEUTRAL to UNFAVORABLE.
EVA Dimensions, LLC downgrades PEP BOYS MAN MOE from HOLD to UNDERWEIGHT. Investars Analyst Actions - public – 03/04/2010 On March 4, 2010 EVA Dimensions, LLC downgraded PEP BOYS MAN MOE from HOLD to UNDERWEIGHT.
Channel Trend Inc. downgrades PEP BOYS MAN MOE from NEUTRAL to UNFAVORABLE. Investars Analyst Actions - private – 03/01/2010
I am currently on the sidelines. Got taken out at $9.90......AAP and ORLY both reported weaker sales last quarter ending December. PBY's quarter to be reported next month ended about 1-31-10....so they also have an extra month of extremely if not the worst weather in years......being yearend, for the past several years PBY has generated large writeoffs at year end. If they don't this year, it will be the first time since I can remember. I believe they will beat expect on EPS by a wide margin. However, the main risk is sales and how much they declined. They already said that sales were down for first month of quarter (November) and you can bet they didn't recover in December-January.....expect is for a 2.3% increase in sales this quarter. Ain't gonna happen. The scary thing is expect for quarter ending April is 3% increase. I believe the analysts are going to get spooked knowing they ramped up too much. If sales were down 2%+/- they may have trouble even hitting EPS. For the record, I see PBY at $18+ in 18-24 months and $12-15 in 6-12 months but next 3-4 months could prove to be bumpy. I also noticed stock was down significantly Friday with volume for that one day exceeding the total volume of previous 4 days combined. Volume has been extremely light for past month plus and sudden spike did not have the volume to support it at these levels. IMVHO we will see below $9 before above $11 in next 30 days. DaninFW