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AutoZone, Inc. Message Board

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  • ptyk99 ptyk99 Mar 4, 2004 3:03 PM Flag

    P/E = 12.8

    Value:
    Something is not adding up. If you allow the shorters to drive the stock down to say 60, that gives AZO chance to buy back some at better terms. Allow the shorter to cover, note there is no net drop of shares. This way, the shorters make money, the company saved money and the remaining share holders hold more fraction of the company. Who is the loser here?

    Following the logic further. I don't understand why should any one hope this stock to increazse in price. Isn't the larger goal that to own an ever larger share of the total pie (i.e. the company itself book valued at $5)?

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    • <<Value:
      Something is not adding up. If you allow the shorters to drive the stock down to say 60, that gives AZO chance to buy back some at better terms. Allow the shorter to cover, note there is no net drop of shares. This way, the shorters make money, the company saved money and the remaining share holders hold more fraction of the company. Who is the loser here?>>

      Losers are the people who buy from the shorts on the way down, plus if AZO is to repurchase shares after it drops AND the shorts are to cover, that's more shares than were shorted at the top that need to be purchased. Additional losers (under your scenario) are those who decide to sell after the drop. Regardless though, I'll ask again, can you say, "market manipulation"?

      <<Following the logic further. I don't understand why should any one hope this stock to increazse in price. Isn't the larger goal that to own an ever larger share of the total pie (i.e. the company itself book valued at $5)?>>

      Yes, long-term shareholders do benefit when a company's stock declines if that company is in the process of repurchasing shares *AND* if the stock did not decline because of an event which affected the value of the company (like, for instance, that same-store sales were flat).

      • 1 Reply to value529
      • Value:
        I have to give it to you. You are very objective and unemotional. Great traites for an invester. If you are what you claimed 26M, you are doing great. I would not want to load more AZO from here, but would be interested in any other companies you follow and why you are interested in them. Care to post some here? Thanks.

    • I agree with the last meessage. The further it drops the better. Hopefully 50-60 for a couple years. But it never will. I really don't like companies with any debt so I will not buy more.

      I known lots of companies that aren't around anymore, Thrifty, Two Guys, Builders Emporium, Treasury, ... Thats what happens to companies with debt, they risk going too far.

 
AZO
533.45-0.57(-0.11%)Jul 11 4:01 PMEDT

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