The Pep Boys - Manny, Moe & Jack (PBY)

Auto is coming back.

prebuy2 & 50>200

way undervalued....fixer-up time

PEP Boys is so service oriented and promoting pay to produce that the new advertising along with some new stategies will equal much increased profit value starting this year.

The company is insanely valued. PBY was sucessful in obtaining a new $300 million credit facility last Friday which is impressive when you consider how tight financial instituions currently are about lending. PBY owns the real estate on 240 of its 540 locations, pays a 8% dividend yiield and is in the process of a turnaround effort with a new management team. PBY is the only company in the retail autoparts segment which offers installation, brake jobs and tires. people hold their cars longer in a poor economy, and buying tires and brakes is a non discretionary purchase. they have to do it. PBY's has also seen strong insider purchases, and they have paid their debt down from $500 million to $300 million in the last year by raising cash by monetizing their real estate through sale lease back transactions. The company has a $160 million market cap with sales of $2 billion per annum..its valuation is laughable.

I have always liked PBY...a bargain at todays prices. Believe PBY will do very well with the economy the way it is.

Recession/depression-cars still need to be repaired. Aftermarket cos have not done well during the new car frenzy but will come up in the weak times

PEP BOYS IS A BAD AUTO PARTS STORE

This company has been around a log time and has seen many ups and downs. They have made some positive changes lately and are starting to show some results. This is a poor mans' buy which is why I think a lot of people are going to load up on buying it over the next 3-4 years. I will go out on a limb and say it will be $25 in that time frame.

The High price for oil and parts to maintain cars and trucks,my slow down , but in time it my soon come to a habit that it's the whey it's going to be .Or everybody is sick and tired of the high prices ,and find other ways to bring the price or change to other way for fuel for there transprortion metheds.ect.As is jobs are effected,with some cut backs in schools,collage,employment,truck drivers.NO Work,NO Money!NOCompenys,think about that.

This stock has an opportunity to come out of the leadership transition in the proper direction,with stronger profits. However, long term this company is hurt by the increased gas price. This is a miles driven business. The fewer miles driven the fewer oil changes, brake jobs, tire replacements, etc. Short term relief to this is possible but long term think we will see only minor improvements.

It would seem only sensible for this stock to see action. With prices of gasoline, food, and all goods so high, who can afford to get a new vehicle? Best bet is to repair the old reliable car that everyone left behind to drive the gas guzzling SUVs. My son's old Olds is getting 30 plus miles...and Pep Boys will keep it on the road a while longer!

From my short ideas/valuation screen

Good foundation, strong base and with new car sales, the parts and service sectors should be rising

back in black...

according to some leading analysts on PBY,

"the fundamentals might support a more extended run."

"the business is skewing in favor of the providers with a strong private-label exposure [like] Pep Boys and AutoZone not Midas and Munro"

"drivers of a ‘72 Pinto don’t think the clunker needs the expensive luxury of brand-name parts. Kevin Dann said sales at Pep Boys’ service centers, which declined slightly in this quarter last year, could increase three to five percent this quarter."

more insider buys, both yesterday and today

Things get worse before they get better

Inside buy action.

Pep Boys has new TOP managment who are getting paid a whole lot of cash to turn this puppy around....and they will...but it will take time...cause this company is broken...it's management style is late 1930's...BUT watch out...in a year or so...the stock will SOAR...so now IS the time to BUY! As long as you are in for the long haul...but be not the faint of heart because short term, there are tough times ahead for the stock!