Short Opportunity of A Lifetime AZO Auto Zone

TraderZones · Mar 31, 2009

the endless false belief that somehow, a few traders are smarter than the market. Don't deceive yourself, the market knows a lot more that you do.

Blindly deciding that a stock is over or under priced is a fools errand. You might as well put your money on the roulette wheel. Either way, the house gets it cut

Stoxtrader · Mar 31, 2009

Quote from fencerd4:

Why in the world is this piece of shit at 163? Yeah they beat earnings last quarter, but that does not explain the ridiculous share price. Maybe it is 97% owned by institutions or the asshole analyst pumping with the same old methods. They first pumped oil when it was at 150. They pumped casino when they were above 100 giving a bullshit explaination such as people gamble more in a recession. Now, they are saying that people will fix their cars more. fuck this piece of shit stock. Im so pissed at its absurd pps that I am very tempted to short it tomorrow with all my margin ($108,784).

Citi raised estimates for AAP, in the same sector. I'd either wait for a breakdown, or do some kindof pairs trading with AZO and some other stock in the sector (AAP, ORLY, PBY, PRTS).

http://finance.yahoo.com/news/Advance-Auto-should-see-sales-apf-14410164.html

piezoe · Mar 31, 2009

Quote from stock-short3r:

I dont understand what you are defending. Are you saying that the pps is rediculous and that is what you are defending him from. When you buy over priced stocks..you better use a stop.. I actually see more risk in buying a stock that has been clobbered.(there may be news you dont know about.)

How many shorts got clobered the same way on POT shorting from 100 to 150 to 200 to 240. AZO is at all time highs...why would you want to short it. The smart money is waiting for a clear breakdown. That is when the $$ is made.

SHORT3R

No argument with your last post at all, Short3R. I am looking at the at the 240 Jan 10 puts, just because of Fence4rd's post. Thank you Fence.

piezoe · Mar 31, 2009

Quote from Stoxtrader:

Citi raised estimates for AAP, in the same sector. I'd either wait for a breakdown, or do some kindof pairs trading with AZO and some other stock in the sector (AAP, ORLY, PBY, PRTS).

http://finance.yahoo.com/news/Advance-Auto-should-see-sales-apf-14410164.html

Great suggestion!

tradealarm · Mar 31, 2009

Guys, please look at short interest of AZO. Market maker squeezed your short positions because too many people short AZO.

http://www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=AZO&selected=AZO

lindq · Mar 31, 2009

Quote from fencerd4:

Im so pissed at its absurd pps that I am very tempted to short it tomorrow with all my margin ($108,784).

AZO is an extremely well run company with a reasonable PE and solid EPS, in a rising overall market environment.

Short it and die.

syswizard · Mar 31, 2009

Quote from lindq:

AZO is an extremely well run company with a reasonable PE and solid EPS, in a rising overall market environment.

Short it and die.

Exactly....and their customers don't live in fancy or big houses that going to be foreclosed.

Kassz007 · Mar 31, 2009

My friend runs a mechanics garage similar to this (but on a much smaller scale obviously) and says business is booming right now.
People want to repair not buy new.

Cutten · Mar 31, 2009

Here's a tip that will save you lots of money and stress - never short a stock until the newsflow turns negative.

piezoe · Mar 31, 2009

Quote from Cutten:

Here's a tip that will save you lots of money and stress - never short a stock until the newsflow turns negative.

And all the news is happy happy right now! In fact it's too happy. Tells me this is a great one to watch for later shorting opportunity.