Short Opportunity of A Lifetime AZO Auto Zone

Discussion in 'Stocks' started by fencerd4, Mar 31, 2009.

  1. 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).
  2. Since no one is going to reply to this, I will be merciful and advise you to not catch falling knives.
  3. LMFAO, maybe they are actually making money?! :eek:
  4. sledged


    I agree totally with you that the share price is absurd, everytime I watch it and think that it is poised to break down it just keeps going up and up. Manipulation at its absolute finest. The whole rationale that this company thrives in a bad economy is total shit, their highest margins come from rims, seat covers and accessories like those. So in a recession people are buying more rims and seat covers? How many shadetree mechanics are there out there? Are there that many people that can work on their own cars? I am gonna watch this one for when it actually shows an inability to break resistance because everytime it seems like a sale it hits a new 52 week high.
  5. piezoe


    Of course it is absurd. Never short a stock however because you think it's too high! Wait until there are signs of a breakdown. Another possibility if you just have to short it now: buy puts deep in the money and far out (if they are available, of course, i have not checked).
  6. This thread reeks with stupidty. First off the price is not rediculous..the price is just what it is. Also why would you be pissed at the absurd pps...did it do something to you.(are you already short) Also you would not think the pps is so rediculous if you were smart enough to go long on it.:p

  7. piezoe


    I'm going to defend Fencerd4 here. A price can be both ridiculous AND "just what it is." It isn't a good idea, however, to short something just because the price is ridiculous. On the other hand, if you make it a practice of buying stocks at ridiculously high prices, you will ultimately get badly burned. If you were clever enough to ride AZO up to a nice profit, congratulations, and in that case i hope you have enough sense to exit when the technicals say you should.
  8. 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 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.

  9. bellman


    I agree that it is a good bet to short AZO now. I disagree with the OP when he says it is a "short of a lifetime."

    AZO is trading way above the MA. The theory that people fix their cars rather than buy new ones is already priced in. And rising gas prices this summer might actually nullify some of that by encouraging the purchase of newer more efficient cars. I look for stock to underperform the market by 10-20% over the next year.
  10. Think about it for a second. No one is buying new cars and no one has the money to send their vehicle to the dealership service department.

    The result is to buy parts/tools at Autozone and service it in the driveway. Autozone also has service bays that do it cheaper then the dealer.

    There is no better environment then the current one for Autozone and its stores.
    #10     Mar 31, 2009