The boys were trading at nine and change a year ago before it took the dive to 2 and 5/8s. What's different about the company now that makes it attractive? I think we are going to see another rotation of disappointed whiz kids SO get ready for another slide. Riggy
Except one year later, there have been thousands of dealership closings - even considering PBY's inept management, PBY will still be a major beneficiary of all such closings. It will improve both top line and bottom line results.
Every time I have bought PBY stock I have hoped that one day they would hire someone that could lead PBY out of the Dark Ages. I don't think we will see $2 again. If it were to crash again, the market has stabilized enough that someone would take them out of their misery. Riggy, the sad thing is this could be a great company again. All of their current "sales increases" are just smoke and mirrors. Tires at $300+ a set can add up sales quickly but profits are almost nil. A few years ago when I competed with PBY they were selling 30 pound cylinders of freon to the commercial shops for $1,000 a can and at about cost. They would sell oil and chemicals by the case for big discounts just to rack up sales. I used to tell my customers that wanted me to match that they should buy from PBY instead of me and together we could both put their competitor and mine out of business....PBY upper management just finds a high ticket way with no margin to drive sales. Customer service, product selection, margin management just to name a few are foreign concepts to these guys. They are walking away from retail where the higher margin exists. If one really stops to think....if sales are flat this quarter...that means they are only doing as good as last year. Everyone else is benifitting from economic downturn. For these guys it brings them back to status quo. I still believe that the analysts have pushed expect to a point this quarter that it will be a stretch to deliver. Any downside surprise could cripple the stock. I don't mind trading the stock till report but not until after would I consider getting back in. We should have short interest report Monday. I suspect we will see a few million shares more shorted between last report and first week in September
BAY, you are banking too much on the service side of this business. With the Dealers closing, will PEP be able to attract the customers but more importantly, the ASEs? Having reps that can change out oil and rotate tires is not enough. The money is in under car maintenance.Remember PEP must be a auto parts store first or change its name to OIL CHIMPS. The stock is at nine because the Street can spin just what you are saying...... makes sense until somebody takes the time to see the flaw in that broad brush stroke. I just don't see it happening with the Boys. Riggy