Short Opportunity of A Lifetime AZO Auto Zone

When credit starts flowing again next year and people move out of their used cars that need parts and back into homes with new cars, this stock is finished.
The big question is WHEN ?
 
Quote from Cutten:

Watch it by all means. Just bear in mind that right now the news for these companies is good. There is a fundamental economic trend in their favour. Generally with shorts you want something where the fundamentals are negative and getting worse, not positive and possibly getting even better.

If you remember homebuilder stocks, they kept going higher for many years because they flow of news was positive. Even though they were eventually an amazing short sale, it was only once bad news started to flow through that their uptrends were halted and the stocks started to move lower in a sustained fashion.
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Totally agree. A sector can, and does sometimes, carry on a long while after it is obvious to anyone with a brain that the sector is toast. (e.g., homebilders comes to mind.)
 
This stock is a dangerous one to short. They could easily run. Its in strong hands. They are like the homedepot of the Auto biz with no Lowes to compete. when the economy goes bad the Do it yourselfers go there. With dealerships going under then you have only aftermarket parts available. Where do you get these AUtoZONE. Its a tricky trade. It could get a stock split soon or it could increase as more institutions get into the stock.

Never short a stock because its too high....
AZO target price 250...
 
AZO dropped 10 points today while the market rallied. Tomorrow should be an interesting day for those long AZO. Might just see them fill that early March gap.
 
Quote from myoffices:

This stock is a dangerous one to short. They could easily run. Its in strong hands. They are like the homedepot of the Auto biz with no Lowes to compete. when the economy goes bad the Do it yourselfers go there. With dealerships going under then you have only aftermarket parts available. Where do you get these AUtoZONE. Its a tricky trade. It could get a stock split soon or it could increase as more institutions get into the stock.

Never short a stock because its too high....
AZO target price 250...
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You should learn how to do research.

1) AZO does have competitors, a simple use of Yahoo Finance will lead you to:http://finance.yahoo.com/q/co?s=AZO

2) Profit margins from auto parts retailers do not come basic parts but from more luxury items, like rims & trinkets. Profit margins will contract.

3) Their balance sheet sucks and they are sitting on a lot of inventory that is obviously not moving.

4) The ONLY thing that they have been doing which is stock price positive is buy back a lot of shares on a consistent basis

5) The stock is manipulated via RBS where one of their former execs went.
 
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