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AutoZone, Inc. Message Board

  • soylaberga soylaberga Mar 7, 2012 7:47 PM Flag

    $750M to buyback shares

    great way to deploy capital after a messily 501K purchase in Q2 and 954K in Q1 for a total of 1,455K.
    Between Feb 11, 2012 to march 6, 2012 stock went from $358 to $385, assuming they spent all the $486M they had remaining they bought around 1.3M additional shares.
    I ask where did they get the cash to spend that amount (not saying they did, but why would they increase the authorization if they still had room in the previous one). They had $103M in cash and the entire quarter that ends in May may generate $600M in net income, assume $200M per month, they would be short $100M+.
    So they had to use their line of credit, since I doubt they can further extend the vendor financing.

    So why announce such a big buy back if you don't have the cash to execute it, well they can always increase their debt couldn't they. As always baffled by the way this is being managed/manipulated.

    all my humble opinion.

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