Tag Archive | buy

Autozone is definitely “in the Zone” but are there risks?

originally posted at Minyanville.

by Chris Georgopoulous, SmartStops contributor

Autozone (AZO: NYSE), a retailer of automotive replacement parts and accessories has seen an unprecedented appreciation in value over the past few years while most equities have been punished from an economic recession.  While the success of Autozone’s stock, management and business model are unquestionable there is still one question that needs to be answered; “Will it continue? “

Most businesses experienced negative effects from this past economic recession, Autozone triumphed.  The marketplace for new cars dried up quickly when personal income and spending dropped. With less money in the pockets of consumers, the more they had to rely on their aging autos. Aging autos need to be constantly fixed, and where did consumers go to replace those batteries, headlights and fuses? That’s right, “Get in the zone….Autozone”! 

This macroeconomic factor is the foundation of the growing demand, but it wouldn’t have propelled the stock alone. A competent management focused on using this ever growing cash flow to aggressively repurchase shares, open new stores and concentrated on maximizing same store sales figures. The stars aligned for Autozone and they took advantage of it.

 

Autozone (AZO) SmartStops Long-Term chart

Simple Moving Averages to highlight; 20=$292.10, 50=$271.55, 200=$178.82

The same success can be seen in the technical and fundamental analysis of their stock. From its lows in early December 2008 the stock has increased from the mid $80s to over $300. The Stock has not once broken its 50 day SMA, which was tested for the first time in 2 years during the most recent market correction.  Once tested the stock quickly rebounded in defiance of the overall market and broke to new highs.

Fundamentally the market may even be discounting the stock’s value.  Yahoo Finance lists the next five years growth rates at around 15%, Read More…

Silver: Value Buy

By Raghu Gullapalli, contributing writer ,  as originally published on Minyanville

Value investors, such as Warren Buffet, William O’Neil and Jordan Kimmel are all big proponents of the idea of buying low and selling high. All these extremely experienced investors also look at historical patterns and are always on the hunt for bargains.

Or as traders refer to it, “buying into a pullback.”

Since its ballistic drive up in late April to create new historic highs, silver has plummeted down and the market saw the kind of volatility many traders thought gone in the post financial crisis era. But rather than continue its freefall to price levels that this writer thought were more in keeping with its historic norms, silver defied expectations and has consolidated in a $5 range over the past seven weeks.

Silver, SLV

Read More…

As President Obama said, the stock market needs to be under a watchful eye

President Obama made this statement in his inaugural address.  For the latest on what’s happening read below.  SmartStops is proud to be a member of the GlobalRisk Community.    Of course , we at SmartStops think regulation can only achieve so much, and hope that our intelligent risk management approach can be an alternative “watchful eye” helping increase protection for all investors, traders and professional advisors.

This was originally published on the GlobalRisk Community website.

 DFA Reform: With 30% of rules in place will regulators be ready to prevent another financial crisis.

Report by Marijana Curguz – GlobalRisk community’s participant at the conference

With House Committee passing a slew of rules on May 4, 2011 to postpone the implementation of derivatives section of the DFA by 18 months, Seila Bair’s decision to leave the FDIC on July 8, Geithner’s warning of a financial crisis if the legal debt limit is not raised, many are wondering if the U.S. economy is heading back into recession and will regulators be ready to prevent it.
These and other concerns were the main focus of the Regulatory Risk conference held in New York on May 9-10, 2011.  The organizer, Marcus Evans, brought together leading industry Experts and a keynote speaker Carlo V. di Florio, Head of SEC Office of Compliance Inspections and Examination,  to evaluate critical Regulatory Reforms: the Dodd-Frank Act, Basel III, housing finance reforms and KYC/CIP that are drastically altering the landscape of the financial world as we know it.
Florio underlined SEC need for a big budget boost to keep up with the fast-growing markets and carry out new duties they were tasked by the DFA.  SEC was handed lion’s share of work to implement DFA that requires it to write nearly 100 new rules for Wall Street by summer, manage systemic risk, oversee the $600 trillion derivatives market, regulate the unregulated (PE, HF, Credit Rating Agencies, ABS) and catch the next Bernard Madoff, and secure greater transparency and liquidity.
Read More…

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