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Just when you think you have all the answers, I change the questions. Today I sold AZO at $269.26. That’s a 15% gain over my purchase price of 233.66 on October 22nd. That’s a 15% gain in only 8 weeks. That’s a 99% annualized gain. Over the same 8 weeks, the S&P 500 was up only 5%. Nice try, but not nearly as good as $$$MR. MARKET$$$.
You sees? You SEES?? I told you AZO would go up, up and up. Didn’t I? Did you buy any AZO? You? YOU? YOU??
That makes 21 consecutive profitable trades for $$$MR. MARKET$$$. Likin it….likin it. Are you likin it? You? Some? Now??
I am the HUGE! Bring me your finest meats and cheeses.
$$$MR. MARKET$$$ is so huge, he can’t fit in Wikipedia
After platinum, albums go $$$MR. MARKET$$$
They once made a $$$MR. MARKET$$$ toilet paper, but there was a problem: It wouldn’t take crap from anybody!!!
Well..there you have it. Yet another winner from the greatest stock picker on the planet. Do you want to see another one? Well…do you? If you do, you have to tell a friend to join my freeeeee site and also tell me who the greatest stock picker on the planet is. These simple tasks will net you one more email from the KING of stockpickers.
I am HUGE!!!
$$$MR. MARKET$$$
================================================== =============
10-22-2010, 05:50 PM
mrmarket
Administrator Join Date: Sep 2003
Posts: 3,733
AZO ==> The Pemberton Winner
--------------------------------------------------------------------------------
The zone is a very powerful state, and can help you reach beyond your limitations to achievements you may have never realized were possible. Tiger Woods was in the zone, winning golf majors like he was easting pez candy. Then he let his indiscretions come into play and now he is not in the zone. Brett Favre was in the zone, flinging footballs around and never missing a game. Then he got a little creative with his cell phone and got out of the zone.
Here’s how you get into the zone.
1. Notice what is happening right now.
2. Weigh all your options.
3. Learn from your experiences.
4. See what is different.
One the other hand, $$$MR. MARKET$$$ is always in the zone. Did you know I have 16 consecutive profitable trades of 15% or better.
Getting into the zone is possible. But it is a skill more than just luck. And like any skill, you have to practice to get good at it. Or, you can just buy great stocks like Autozone. Today I bought AZO (Autozone) at 233.66. I will sell it in 4 to 6 weeks at 269.08. Here’s why I like Autozone:
AutoZone, Inc. operates as a specialty retailer and distributor of automotive replacement parts and accessories. Its stores offer various products primarily to do-it-yourself customers for use in cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The company’s automotive hard parts product line includes A/C compressors; batteries and accessories; belts and hoses; carburetors; chassis; clutches; CV axles; engines; fuel pumps; fuses; ignition; lighting; mufflers; starters and alternators; water pumps; radiators; and thermostats. Its maintenance items include antifreeze and windshield washer fluid; brake drums, rotors, shoes, and pads; chemicals, including brake and power; steering fluid, oil, and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paint and accessories; refrigerant and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. AutoZone’s discretionary product line comprises air fresheners; cell phone accessories; drinks and snacks; floor mats and seat covers; mirrors; performance products; protectants and cleaners; sealants and adhesives; steering wheel covers; stereos and radios; tools; and wash and wax products. The company also offers commercial sales program that provides commercial credit, and delivery of parts and other products to local, regional, and national repair garages, dealers, service stations, and public sector accounts. In addition, it sells the ALLDATA brand automotive diagnostic and repair software, as well as automotive hard parts, maintenance items, accessories and non-automotive products on the Web at www.autozone.com. As of August 29, 2009, AutoZone operated 4,229 stores in the United States and Puerto Rico, and 188 stores in Mexico. The company was founded in 1979 and is based in Memphis, Tennessee.
In other words, if you own a car, there’s nothing that Autozone doesn’t have for it. Let me tell you another thing. Look at this freaking chart:
AZO has been advancing on a remarkably smooth trend line for the last 12 months and is at a new high. The MACD below the chart is strong, with the short-term average trading ahead of the long-term average. According to Titan Omega, it looks like Mt. Everest. Yes indeed it does. And there’s a couple of reasons for that:
#1. People are owning cars longer. And why shouldn’t they? Buying a brand new car is the worst economic decision anyone can make. There are more cars older than 7 years old on the road now than ever before.
#2. AZO is the king of this retail market. They are bigger, badder and do it better.
Don’t believe me? Check out this online review:
“I don't know a thing about cars, but I do know that most places like Jiffy Lube or any other of those chains oil/lube places will rob you like red headed guy that will rob you if they could. Every time I go in there I tell the guys what I want to do and they take me around the store and fully explain what I need to do, like today I needed to flush out my radiator. Get this, the guy at the Mobile wanted to charge me like $85.00 bucks to flush out my radiator. I did myself by going to Auto Zone and paid $28.00 for two bottles of coolant, an air filter and a license plate holder. The guy even told me how to do it. So there you go. I'm going to start to do all my own work.”
Or how about this one:
“I wish I was one of those chicks who wears wife beaters while laying underneath a classic car switching out the thing on the thing. I also wish I looked like Megan Fox. Hell, I wish I was Megan Fox. Unfortunately, none of these things are true. *shakes fists in the air* WHYYYYYYYYYYYYYYYYY?!!!!
I have to admit though, I lurve a good Auto Zone. Rows and rows of crap that I have no idea how to use, but totally want to buy anyway. See that exhaust clamp over there? I need it, but in bright pink. And does that rocker switch come in mauve? What about that tool box light? My eyes shine bright with excitement while I skip down the aisles of sealants and adhesives, oils, steering wheel covers, and screw and ball sets.
What's that? What's THAT? WHAT'S THAT?!”
Or this one…..?
“I didn't have time to play on my most recent trip. My car was squeaking like a mug so I scurried in, snatched a bottle of steering wheel fluid, slapped 5 bones down for the man, and went back outside to go glug, glug, glug in the thing on the thing.
Voila. No squeaky anymore. Me likey.”
Or my favorite one:
“Even if you have no idea what you are doing (like me) employees and the dudes inside shopping (I mean seriously why are you all in here? What do you NEED?!) usually offer to help. It's a quick fix place, and saves you some dollars. I'm okay with that.”
You have to like the auto parts industry. Cars have a bazillion parts to them and most of them break at one time or another. Autozone is the WalMart of auto parts stores so even your friendly neighborhood mechanic usually goes to them for same day stuff.
Autozone has been basically chugging along as if Wall Street II Money Never Sleeps never even happened. All they do is blow away top and bottom line estimates quarter after quarter as their gross margin percents hover around 50%. That’s insane! They act as if they have no competition whatsoever.
AutoZone has 16 consecutive quarters of double-digit EPS growth. $$$MR. MARKET$$$ has 16 consecutive profitable trades of 15% or better. Hmmm…get the winning connection? Not only does $$$MR. MARKET$$$ think Autozone is great, Autozone thinks Autozone is great. They have been buying back their own stock for quite a while and have retired quite a bit of it (over 30% in the last 4 years), meaning their earnings are getting spread out over fewer shares.
Last month, AZO reported net sales of $2.4 billion for its fourth quarter (16 weeks) ended August 28, 2010, an increase of 9.5% from the fourth quarter of fiscal 2009 (16 weeks). Domestic same store sales, or sales for stores open at least one year, increased 6.7% for the quarter.
Net income for the quarter increased $32.8 million, or 13.9%, over the same period last year to $268.9 million, while diluted earnings per share increased 27.7% to $5.66 per share from $4.43 per share in the year-ago quarter.
For the fiscal year ended August 28, 2010, sales were $7.4 billion, an increase of 8.0% from the prior year, while domestic same store sales were up 5.4%. Operating profit increased 12.2% on an operating margin of 17.9%. For fiscal 2010, net income increased 12.4% to $738 million, while diluted earnings per share for the period increased 27.6% to $14.97 from $11.73.
Under its share repurchase program, AutoZone repurchased 2.8 million shares of its common stock for $565 million during the fourth quarter, at an average price of $199 per share. For the fiscal year, the Company repurchased 6.4 million shares of its common stock for $1.1 billion, at an average price of $176 per share. At the fiscal year end, the Company had $185 million
During the quarter ended August 28, 2010, AutoZone opened 80 new stores and replaced one store in the U.S. and opened 26 new stores in Mexico. As of August 28, 2010, the Company had 4,389 stores in 48 states, the District of Columbia and Puerto Rico in the U.S. and 238 stores in Mexico.
These new stores and the share buybacks are really going to help the company EPS going forward. ANAL-ysts have projected revenues for the next year of 7.76 Billion with net income estimates of $17.28 per share. I laugh so hard at these numbers that I soil my underwear with motor oil. $$$MR. MARKET$$$ projects that fiscal year ending August 2011 will actually see revenues of $8.36 Billion which will generate EPS of $18.39 per share. At today’s (very low) PE of 15.7 that should easily convert to a share price of $18.39 x 15.7 = $288.72 per share, which is well past my target sale price.
No need to listen to me, listen to what Bill Rhodes (the CEO, not Dusty Rhodes cousin) has to say:
"Our performance during the fourth quarter represents a strong conclusion to a very good year for AutoZone. For the year, we set several new all-time records for our company: EBIT margin 17.9%, accounts payable to inventory ratio of 106%, operating cash flow in excess of $1 billion, and ROIC of 27.6%. While the macro environment for our industry was certainly favorable, our team's commitment to our culture, constant refinements to our offerings, and high level of execution led to our second consecutive year of strong financial performance. I would like to thank and congratulate our 60,000+ AutoZoners across North America for their impressive performance.
But the real emphasis and benefit of our "one team" approach is that every customer deserves an exceptional experience when they interact with us. The attitudinal shift throughout our organization regarding giving every customer a great experience is really making a difference.
We'll recognize our best managers with a celebratory event and say thank you and congratulations. But we cannot, and will not, rest on our laurels. We must continue to execute. We'll focus on continuing our share gains in retail while driving to new highs in commercial. We'll recognize our team for opening 160 net new domestic stores, a 3.8% growth rate, and our Mexico team for opening 50 new stores in 2010, the highest opening level ever, and a 27% store growth rate.
Look, through boom and bust cycles, our organization has performed well and our financial performance has been strong. I attribute this solid financial performance to our business model and our culture. We're passionate, highly committed people, understand the strategies, and consistently execute at an extremely high level. Our team understands this industry, and manages our resources very well.
Every quarter, our job is to improve upon our customer service levels. In an era where so many retails have gone to self-checkout and reduced customer interaction, we take personal interaction with our customers very seriously. We know that our customers want to get in, get what they need, and get back on the road. But they are most often looking for friendly, trustworthy advice.
I'd like to take a moment to reiterate that our business model remained very, very strong. We remain excited about our growth prospects for the upcoming year. We cannot take anything for granted as we understand our customers have many alternatives. Our culture remains our key point of differentiation from our competition, and we must not lose sight of the importance of basic store execution in order to remain successful. We have a solid plan for 2011, and as usual, our team cannot wait to get started. In fact they're well on their way. But I want to stress that this is a marathon and not a sprint. As we continue to focus on the basics and never take our eye off optimizing long-term shareholder value, we are highly confident AutoZone will continue to be incredibly successful.”
Well said big man. I am sure you are going to make us all rich. What else is there to say, other than,”Get into the Zone! Autozone!”
I am HUGE!!
Let me know what you think of this write up.
$$$MR. MARKET$$$
www.mrmarketishuge.com
You sees? You SEES?? I told you AZO would go up, up and up. Didn’t I? Did you buy any AZO? You? YOU? YOU??
That makes 21 consecutive profitable trades for $$$MR. MARKET$$$. Likin it….likin it. Are you likin it? You? Some? Now??
I am the HUGE! Bring me your finest meats and cheeses.
$$$MR. MARKET$$$ is so huge, he can’t fit in Wikipedia
After platinum, albums go $$$MR. MARKET$$$
They once made a $$$MR. MARKET$$$ toilet paper, but there was a problem: It wouldn’t take crap from anybody!!!
Well..there you have it. Yet another winner from the greatest stock picker on the planet. Do you want to see another one? Well…do you? If you do, you have to tell a friend to join my freeeeee site and also tell me who the greatest stock picker on the planet is. These simple tasks will net you one more email from the KING of stockpickers.
I am HUGE!!!
$$$MR. MARKET$$$
================================================== =============
10-22-2010, 05:50 PM
mrmarket
Administrator Join Date: Sep 2003
Posts: 3,733
AZO ==> The Pemberton Winner
--------------------------------------------------------------------------------
The zone is a very powerful state, and can help you reach beyond your limitations to achievements you may have never realized were possible. Tiger Woods was in the zone, winning golf majors like he was easting pez candy. Then he let his indiscretions come into play and now he is not in the zone. Brett Favre was in the zone, flinging footballs around and never missing a game. Then he got a little creative with his cell phone and got out of the zone.
Here’s how you get into the zone.
1. Notice what is happening right now.
2. Weigh all your options.
3. Learn from your experiences.
4. See what is different.
One the other hand, $$$MR. MARKET$$$ is always in the zone. Did you know I have 16 consecutive profitable trades of 15% or better.
Getting into the zone is possible. But it is a skill more than just luck. And like any skill, you have to practice to get good at it. Or, you can just buy great stocks like Autozone. Today I bought AZO (Autozone) at 233.66. I will sell it in 4 to 6 weeks at 269.08. Here’s why I like Autozone:
AutoZone, Inc. operates as a specialty retailer and distributor of automotive replacement parts and accessories. Its stores offer various products primarily to do-it-yourself customers for use in cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The company’s automotive hard parts product line includes A/C compressors; batteries and accessories; belts and hoses; carburetors; chassis; clutches; CV axles; engines; fuel pumps; fuses; ignition; lighting; mufflers; starters and alternators; water pumps; radiators; and thermostats. Its maintenance items include antifreeze and windshield washer fluid; brake drums, rotors, shoes, and pads; chemicals, including brake and power; steering fluid, oil, and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paint and accessories; refrigerant and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. AutoZone’s discretionary product line comprises air fresheners; cell phone accessories; drinks and snacks; floor mats and seat covers; mirrors; performance products; protectants and cleaners; sealants and adhesives; steering wheel covers; stereos and radios; tools; and wash and wax products. The company also offers commercial sales program that provides commercial credit, and delivery of parts and other products to local, regional, and national repair garages, dealers, service stations, and public sector accounts. In addition, it sells the ALLDATA brand automotive diagnostic and repair software, as well as automotive hard parts, maintenance items, accessories and non-automotive products on the Web at www.autozone.com. As of August 29, 2009, AutoZone operated 4,229 stores in the United States and Puerto Rico, and 188 stores in Mexico. The company was founded in 1979 and is based in Memphis, Tennessee.
In other words, if you own a car, there’s nothing that Autozone doesn’t have for it. Let me tell you another thing. Look at this freaking chart:
AZO has been advancing on a remarkably smooth trend line for the last 12 months and is at a new high. The MACD below the chart is strong, with the short-term average trading ahead of the long-term average. According to Titan Omega, it looks like Mt. Everest. Yes indeed it does. And there’s a couple of reasons for that:
#1. People are owning cars longer. And why shouldn’t they? Buying a brand new car is the worst economic decision anyone can make. There are more cars older than 7 years old on the road now than ever before.
#2. AZO is the king of this retail market. They are bigger, badder and do it better.
Don’t believe me? Check out this online review:
“I don't know a thing about cars, but I do know that most places like Jiffy Lube or any other of those chains oil/lube places will rob you like red headed guy that will rob you if they could. Every time I go in there I tell the guys what I want to do and they take me around the store and fully explain what I need to do, like today I needed to flush out my radiator. Get this, the guy at the Mobile wanted to charge me like $85.00 bucks to flush out my radiator. I did myself by going to Auto Zone and paid $28.00 for two bottles of coolant, an air filter and a license plate holder. The guy even told me how to do it. So there you go. I'm going to start to do all my own work.”
Or how about this one:
“I wish I was one of those chicks who wears wife beaters while laying underneath a classic car switching out the thing on the thing. I also wish I looked like Megan Fox. Hell, I wish I was Megan Fox. Unfortunately, none of these things are true. *shakes fists in the air* WHYYYYYYYYYYYYYYYYY?!!!!
I have to admit though, I lurve a good Auto Zone. Rows and rows of crap that I have no idea how to use, but totally want to buy anyway. See that exhaust clamp over there? I need it, but in bright pink. And does that rocker switch come in mauve? What about that tool box light? My eyes shine bright with excitement while I skip down the aisles of sealants and adhesives, oils, steering wheel covers, and screw and ball sets.
What's that? What's THAT? WHAT'S THAT?!”
Or this one…..?
“I didn't have time to play on my most recent trip. My car was squeaking like a mug so I scurried in, snatched a bottle of steering wheel fluid, slapped 5 bones down for the man, and went back outside to go glug, glug, glug in the thing on the thing.
Voila. No squeaky anymore. Me likey.”
Or my favorite one:
“Even if you have no idea what you are doing (like me) employees and the dudes inside shopping (I mean seriously why are you all in here? What do you NEED?!) usually offer to help. It's a quick fix place, and saves you some dollars. I'm okay with that.”
You have to like the auto parts industry. Cars have a bazillion parts to them and most of them break at one time or another. Autozone is the WalMart of auto parts stores so even your friendly neighborhood mechanic usually goes to them for same day stuff.
Autozone has been basically chugging along as if Wall Street II Money Never Sleeps never even happened. All they do is blow away top and bottom line estimates quarter after quarter as their gross margin percents hover around 50%. That’s insane! They act as if they have no competition whatsoever.
AutoZone has 16 consecutive quarters of double-digit EPS growth. $$$MR. MARKET$$$ has 16 consecutive profitable trades of 15% or better. Hmmm…get the winning connection? Not only does $$$MR. MARKET$$$ think Autozone is great, Autozone thinks Autozone is great. They have been buying back their own stock for quite a while and have retired quite a bit of it (over 30% in the last 4 years), meaning their earnings are getting spread out over fewer shares.
Last month, AZO reported net sales of $2.4 billion for its fourth quarter (16 weeks) ended August 28, 2010, an increase of 9.5% from the fourth quarter of fiscal 2009 (16 weeks). Domestic same store sales, or sales for stores open at least one year, increased 6.7% for the quarter.
Net income for the quarter increased $32.8 million, or 13.9%, over the same period last year to $268.9 million, while diluted earnings per share increased 27.7% to $5.66 per share from $4.43 per share in the year-ago quarter.
For the fiscal year ended August 28, 2010, sales were $7.4 billion, an increase of 8.0% from the prior year, while domestic same store sales were up 5.4%. Operating profit increased 12.2% on an operating margin of 17.9%. For fiscal 2010, net income increased 12.4% to $738 million, while diluted earnings per share for the period increased 27.6% to $14.97 from $11.73.
Under its share repurchase program, AutoZone repurchased 2.8 million shares of its common stock for $565 million during the fourth quarter, at an average price of $199 per share. For the fiscal year, the Company repurchased 6.4 million shares of its common stock for $1.1 billion, at an average price of $176 per share. At the fiscal year end, the Company had $185 million
During the quarter ended August 28, 2010, AutoZone opened 80 new stores and replaced one store in the U.S. and opened 26 new stores in Mexico. As of August 28, 2010, the Company had 4,389 stores in 48 states, the District of Columbia and Puerto Rico in the U.S. and 238 stores in Mexico.
These new stores and the share buybacks are really going to help the company EPS going forward. ANAL-ysts have projected revenues for the next year of 7.76 Billion with net income estimates of $17.28 per share. I laugh so hard at these numbers that I soil my underwear with motor oil. $$$MR. MARKET$$$ projects that fiscal year ending August 2011 will actually see revenues of $8.36 Billion which will generate EPS of $18.39 per share. At today’s (very low) PE of 15.7 that should easily convert to a share price of $18.39 x 15.7 = $288.72 per share, which is well past my target sale price.
No need to listen to me, listen to what Bill Rhodes (the CEO, not Dusty Rhodes cousin) has to say:
"Our performance during the fourth quarter represents a strong conclusion to a very good year for AutoZone. For the year, we set several new all-time records for our company: EBIT margin 17.9%, accounts payable to inventory ratio of 106%, operating cash flow in excess of $1 billion, and ROIC of 27.6%. While the macro environment for our industry was certainly favorable, our team's commitment to our culture, constant refinements to our offerings, and high level of execution led to our second consecutive year of strong financial performance. I would like to thank and congratulate our 60,000+ AutoZoners across North America for their impressive performance.
But the real emphasis and benefit of our "one team" approach is that every customer deserves an exceptional experience when they interact with us. The attitudinal shift throughout our organization regarding giving every customer a great experience is really making a difference.
We'll recognize our best managers with a celebratory event and say thank you and congratulations. But we cannot, and will not, rest on our laurels. We must continue to execute. We'll focus on continuing our share gains in retail while driving to new highs in commercial. We'll recognize our team for opening 160 net new domestic stores, a 3.8% growth rate, and our Mexico team for opening 50 new stores in 2010, the highest opening level ever, and a 27% store growth rate.
Look, through boom and bust cycles, our organization has performed well and our financial performance has been strong. I attribute this solid financial performance to our business model and our culture. We're passionate, highly committed people, understand the strategies, and consistently execute at an extremely high level. Our team understands this industry, and manages our resources very well.
Every quarter, our job is to improve upon our customer service levels. In an era where so many retails have gone to self-checkout and reduced customer interaction, we take personal interaction with our customers very seriously. We know that our customers want to get in, get what they need, and get back on the road. But they are most often looking for friendly, trustworthy advice.
I'd like to take a moment to reiterate that our business model remained very, very strong. We remain excited about our growth prospects for the upcoming year. We cannot take anything for granted as we understand our customers have many alternatives. Our culture remains our key point of differentiation from our competition, and we must not lose sight of the importance of basic store execution in order to remain successful. We have a solid plan for 2011, and as usual, our team cannot wait to get started. In fact they're well on their way. But I want to stress that this is a marathon and not a sprint. As we continue to focus on the basics and never take our eye off optimizing long-term shareholder value, we are highly confident AutoZone will continue to be incredibly successful.”
Well said big man. I am sure you are going to make us all rich. What else is there to say, other than,”Get into the Zone! Autozone!”
I am HUGE!!
Let me know what you think of this write up.
$$$MR. MARKET$$$
www.mrmarketishuge.com
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