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Pep Boys - Manny, Moe & Jack Message Board

  • shorthighcoverlower shorthighcoverlower Dec 13, 2012 7:31 AM Flag

    danin: what is your play on the stock buyback?

    What are your thoughts on PBY's stock buyback? Is this their first one ever?

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    • This is the first buyback that I am aware of since at least 1995 when I started trading PBY. It was 4 years+/- ago that I harped constantly that PBY should have been buying thier stock back at under $4 a share.....and they had plenty of cash then too. They were doing the sell/leasebacks. They could have bought back 25% pf their stock for $50 just 10%. It will depend on how they do the buyback coupled with actual sales and EPS gains. There is a legal formula on the maximum amount of shares they can repurchase on a single day based on average trading volume. They can't just buy everything they want each day. However, let's say Gabelli who has bought millions of shares at about $9.50+/- a share average IMVHO could approach PBY or vice versa about selling his investment back to the company. He could get say $11 a share for his entire load and this is viewed as a private transaction. This is what I expect. If this was to happen then the rest of the investors would feel burned because Gabelli made a quick buck and abandoned the ship. Then we could go sub $9 again real quick with poor results to boot. I have never seen PBY management or BOD's do anything to benefit the regular shareholder. JMVHO. DaninFW