AAP
LAMPERT VALIDATES OUR CALL ON $AZO, $ORLY AND $AAP
July 7, 2009
In the past three weeks, Lampert and his key investors sold more than $538M in AutoZone . We are still short on $AZO and its competitors.
The latest argument advanced by supporters of these stocks is that reduction of dealers by GM and Chrysler benefits these stocks. Such Gurus claim that the dealerships being cut are closing, leaving their customers in a lurch and such customers will go to these outfits.
Our checks show that such Gurus have been making these pronouncements without checking the facts. Every single car dealer being cut that we have spoken to is staying open and plans to focus on used cars, parts, and service.
These are short term opportunistic positions, be quick to take profits on dips using technicals.
EDDIE LAMPERT SALE SUPPORTS OUR THESIS ON $AZO (AUTOZONE)
June 24, 2009
Our long term readers know that we have been short on $AZO and its competitors. Last night Lampert indicated in a filing that he sold 454K shares and distributed another 2.6M shares. This sale seems to support our thesis on staying short on $AZO, $ORLY, and $AAP.
CONSIDER ADDING TO SHORT POSITIONS ON AUTO PARTS RETAILERS
June 2, 2009
Consider adding to short positions on AZO around $158.15, AAP around $44.8 and ORLY around $38.11. Add more on spikes up
CONSIDER SELLING SHORT AUTO PARTS STOCKS
May 8, 2009
Auto parts stocks such as ORLY (O’Reilly Automotive), AAP (Advanced Auto Parts), and AZO (Auto Zone) have continued to levitate on the theory that consumers will continue to keep their old cars. This view does not square well with improving consumer sentiment numbers. Further, there is a very high probability that the federal government will start providing consumers vouchers of $3500 or $4500 to trade in their older low mileage cars for new high mileage cars. Passage of such a bill may be the trigger to start a down cycle in these stocks. Consider very lightly scaling in ORLY around $36.50, AAP around $41.50, and AZO around $159.00. Scale in as the stocks move higher or if they break down scale in using technical indicators.
