Autozone: Lampert's Impressive Gains

All of last year CNBC had been running stories about Sears Holdings (SHLD) Chairman Eddie Lampert,  saying he has "lost it", or words to that effect. Yet, AutoZone (AZO), which Lampert will soon own about 50% of is trading just off an all-time high. The silence from the boob tube is deafening.

AutoZone, which is the largest U.S. auto-parts retailer, reported a 12.2% rise in quarterly profit on Monday. (Call Transcript)

Net income rose to $243.7 million, or $3.88 per share, in its fiscal fourth quarter that ended August 30, from $217.2 million, or $3.23 per share, a year earlier. Net sales increased 10.4 percent to $2.2 billion and same-store sales, rose 0.6 percent in the quarter.

Now, I still say that something is in the cards for AutoZone (AZO), AutoNation (AN) and Sears Auto (SHLD). Lampert has controlling stakes in all of them and has friendly Boards to deal with.

Maybe not now, but there are just too many things pointing to it to ignore.

Disclosure: Long SHLD, AN.

Comments

[fatcat:]

Autozone is a well-oiled operation in a growth cycle,because people are keeping their cars longer...and this trend will continue,It was a great company before Lampert got involved.

It would be a shame if he tried to fold it in with those 2 losers..

2008 Sep 23 07:52 AM

[D-D:]

I was keeping tabs on AZN when it was trading at 115$ and due to my own procrastination, I missed this boat
discountedstocks.blogs.../

2008 Sep 23 09:26 AM