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AutoZone, Inc. Message Board

  • red_dragon_2626 red_dragon_2626 May 18, 2004 2:12 PM Flag

    Sources for cash

    I don't think anyone on these board would argue against that AZO stock price is this high because of the stock buy back. Let's check its sources for cash:

    1. A/P has provided a big chuck of the cash. However, it is pretty much maxed, unless the vendor would give them cash for carrying their product.

    2. A&D will not continue to contribute much since we all know stores need revamped at some point in life otherwise it will start to look run down, business will go down as well.

    3. Cost cutting has been maxed, are all store level employee over worked enough yet?

    4. Debt?! Any more debt without significant revenue increase will likely cause credit rateing downgrade.

    Regardless how many MBAs they hire to engineer their capital structure, debt is cheap for a reason, equity is expensive for a reason, we all know one can change that..........

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    • I don't know what your point is, but at AZO I have my car computer checked for free, borrow tools for free, and possibly drop off use oil for free. Just like the Jesse James commercial, seems most auto gurus I know like AZO too. The stores are seem clean to me too. Why wouldn't they be, no real work goes on there, they are stores.

      They should not reduce the buybacks, they should increase them.

741.80-0.06(-0.01%)Aug 31 4:02 PMEDT