Is on the move. http://finance.yahoo.com/q?s=AAPLooks like AAP is up for the competition. Oklahoma City is one of the strong-holds for O'Reilly Auto Parts and over the past two weeks AAP has been constructing two new parts stores directly across the street from or within a 5 block area of an O'Reilly's store front. O'Reilly's has a huge distribution center in Oklahoma City that moves parts throughout the Midwestern US. The two main parts stores having the most competitive positions here are AutoZone and O'Reilly's. AAP looks to secure additional revenue streams by increasing its distribution channels through this new construction effort. Looking at the five year charts, the support lines in 2003, 2004, and 2005 have occurred at about $10/share increments each year so they are growing. If the growth in share price continues as indicated in the past, the next support line is expected to be in the neighborhood of $45/share within the next 2 to 3 quarters. Further DD is required and you may find that this new construction effort is part of their strategic plan. Review the 10K and 10Qs to find out more. While their past three years Working Capital (Net Current Assets) position is about breakeven (i.e., Working Capital - LTD) they are in growth mode. They are mildly short in this area however their operating capital and leveraged free cash flow is enough to pay off their LTD. Their current ratio is nearly 1.2 to 1 which I would rather see it at better than 2 to 1. For the longs this may be a decent stock for the portfolio. - Bill |
Logged
Male
