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AutoZone, Inc. Message Board

  • greeock greeock Jan 31, 2010 2:55 PM Flag

    Am I Seeing Things ???

    The book value of this stock is minus $9 something, and the thing is priced at $155!! Hello? What is this, a disguised ponzie scheme?! Man, when this thing falls, it's going to be ugly...

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    • Sorry about the added posts, but just can't help it, because this AZO "story" is so bizarre. Over at Seeking Alpha some nut has written an article in response to Herb Green's article about AZO's folly. The writer states that the EPS is all that counts for investors. So AZO's buybacks are what cause the EPS to supposedly hang in, and the writer of the article thinks thats cool and is working as a model. Have we all gone nuts? I mean that's supposed to be a business model??? Buy back your stock to prop up EPS, have debt approaching $3 BLN, liabilities greater than assets, negative free cash flow, and a book value of MINUS $9. Jeez! They will discussing this turkey company in business schools in the future and howling with glee over the "business model" it had. What a freakin' joke. It truly is a mad, mad, mad, mad world.

    • Now I'm really confused... Here's what VectorVest, which as of end-of-day today, Feb 9, says about AZO: "AZO has a current Value of $290.23 per share. Therefore, it is undervalued compared to its Price of $159.12 per share."

      VectorVest goes on to rate it a Buy. I just don't get it. See my original post in this thread where I'm wondering if I'm seeing things because according to Yahoo Finance, the book value is something like MINUS $9.00. Compare that to where the stock is currently priced! C'mon! Can anyone show or tell me where I'm off regarding this stock?

    • Not a ponzi scheme.Worse than that.A criminal enterprise that borrowed money to buy back stock while EVERY officer sold all shares and does so at each opportunity.Fidelity got it up for them and kept it here.The eventual debt payments will kill this company into bk.Just a matter of timing the forced liquidation and NO natural buyers

    • I was looking at the same damm thing! I sold a few weeks ago, take a look at the yearly 'shareholder equity'. it has increased 10 fold, to the downside!! BBI blockbuster has a better balance sheet than AZO andis trading at 40 cents!! incredible. will be interesting to see how long eddie can float this thing.

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