The only reason I predicted buying a small chain is because they said that is their plan and that they were on track......I personally think they need to fix what they got and restore profitability to industry levels. Anything else would be a distraction and drain on management focus. However, the street may read it as a positive as PBY has been closing stores and not opening them. This might be seen as a growth story again. AZO, AAP, ORLY and NAPA have shown the real money is in retail parts. Until PBY can be seen as doing likewise I doubt they will impress the street by drifting off to lower margin enterprises. I have run districts of retail and service stores before and retail has far fewer headaches. I also hold a position comparable to yours in stock but also hold equal amount in PBY bonds. DaninFW
its amazing that this company can have a .38 price to book. I shorted the homebuilders for about 2 years and KBH still manages to have book values 2x-3x this. These companies are on the verge of insolvency. So now we get a company with a solid business segment, with understandable and reasonable business plan thats well financed with a .38 book value with an 8% dividend. Its peer are selling at 5x to 10 multiples on a book basis to this stock. Its a perfect reversion to the mean play. After all stocks overshoot and stocks undershoot. I've always made the best money in finding the extremes. Its buying distressed companies at yardsale prices in a unloved or overloved industry.
what am I missing? Maybe nothing? I don't think the analysts understand this because most are yuppie MBA types that got a new car from daddy. They didn't crawl under a beater with a heater to get to their job. They don't fundamentally understand the survival requirements associated with keeping a car running. People can't just go and leverage a new one. A brake job is not a discretionary expenditure in most states expect Tennessee that doesn't require an inspection [ or didn't use to]. Transportation is more akin to salt than it is to a coach handbag. Once the numbers are proven the MBA finance types will count the beans and look back on what a wonderful deal PBY was at $3 per share.
legitimate company. It just isn't being painted wth lipstick... It never has been..
If you want lipstick buy Enron, fella... or perhaps go back and buy some QCOM back in the 80's. BUY low sell higher... I think that PBY is never given any credit for the fact that it is diversified. where have I heard this before? "Multiple streams of revenue"