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AutoZone, Inc. Message Board

  • mgvidpro mgvidpro Dec 3, 2012 4:06 PM Flag

    got some calls.

    lets see tomorow.

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    • disclosure: I own puts.
      to be upfront and clear - I am not trying to berate you.
      We are on opposite sides.
      If you don't mind, I would like to understand your reasoning.
      1. Rapid rise of stock.
      2. insiders are all selling. No one has bought anything in past one year.
      3. stock is being propped up against insider selling by company purchases (with borrowed money). Why is the company borrowing money to buy the stock at these lofty prices?
      4. Eddie does seem to be a master at this game but he has gotten almost out.
      5. Company has negative book value of $41.
      6. True, company is making money and is growing but they are spending all that money and even more on stock buy back and increasing debt
      7. This is not a rocket science or tech/apple type industry. Its an old game. True AZO seems (on paper) better at this business than their competitors. Assuming the numbers are accurate (and no accounting scam would turn up later), AZO is showing good growth and good profits.

      How much higher can this go? Max may be $425? But the downside could be $200 or lower..
      Therefore, Is it worth the risk to reward ratio worth it to go long on this? Just wondering what a long side story is..

      Again... longs... please don't use harsh words.. I mean no ill will against you longs. We are all in this to make money..

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