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Pep Boys: From Buyout Bust To Bargain Buy

Most people remember Pep Boys (NYSE:PBY) for the botched buyout with The Gores Group back in 2012. Gores was looking to take the company out for $15, and courted the company for close to nine months before walking away when the company posted first quarter earnings of $2 million in fiscal 2012, compared to the expected $12 million. Gores believed that the steep decline was signaling that a material deterioration in Pep Boy's business model was taking place.

And for investors who failed to get out during the buyout premium, they're likely still kicking themselves, and for good reason. When Gores backed out of the deal, it was a race for the exits, PBY's stock fell over 40%...

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