Here's a good one: Pep Boys.
Pep Boys has done quite well over the last few years, expanding stores
to over 35 states (16% growth this year alone). Next year, 20% more
stores to open. S&P wrote them up as a buy. Value Line wrote them
up very favorably.
Seems that alot of the newer cars (especially the expensive utility
vehicles) will be needing repairs and parts (Had a very bad winter
back east...is catching up to the 4x4s). New car sales are
down...more people maintaining thier older cars.
Pep Boys offers both parts-only stores (Parts USA) as well as full
service stores that offer everything from installation of tires,
shocks, exhaust, to sales-only of those
parts (~26,000) that stores such as Track Auto offer. Pep Boys
katers to the consumor, back-yard mechanic, as well as the
professional mechanic. All these factors combine into a very
intersting play that, I believe, will reward well. Pep Boys is
timely, inexpensive (I just bought in at $35, 52 week high ~38),
and low risk.
Anyone wish to add to this thread?
Reasons to buy?
Reasons not to buy?
PRB |
