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Edward Dostillio  

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  • AutoZone: The Best Bet In Automotive Retail [View article]
    AZO is a pyramid scheme.... Eddie Lampert took control of a decent business and milked its cash flow for all it is worth. No retailer in any business has an uglier balance sheet then AZO.... How do you have A/R of $150 million and A/P of 4 Billion.

    They have used money owed to suppliers who now are forced to consign parts ... used money from bankers and bondholders to do nothing but buy back stock. This creates artificial demand for shares and juices EPS growth.

    If that isn't bad enough ... they are even juicing reported net income by almost a billion $'s by a liitle accounting trick in changing the way they account for ending inventory. By overstating ending inventory using FIFI instead of LIFO they are able to reduce there Cost of goods sold and show an artificially high net income.

    Insiders used the buy back and share appreciation to get rich ala Enron, and Madoff.... Eddie Lampert and other insiders have already cashed out. Inevitably shareholders, bondholders and suppliers will be fighting over the scrap of a company left behind and your analysis will be just like the bozos who were recommending Enron, Fannie Mae, Freddy Mac, World Com just before they imploded
    Feb 25, 2014. 09:04 PM | 2 Likes Like |Link to Comment
  • Perceptron's Pivotal Inflection Point Could Lead To 75% Upside In 2014 [View article]
    Now the stock is back in a very sweet buying price range and if this quarters earning report disappoints & the stock sells of further to $10 or below I would not hesitate to buy more!

    on a side note ... notice how strong AWX is acting in a horrible market :0)
    Feb 5, 2014. 03:27 PM | 1 Like Like |Link to Comment
  • AUTOZONE: HEAVILY LEVERAGED BUYBACKS AND POSSIBLE ACCOUNTING IRREGULARITIES [View instapost]
    The earnings get inflated by the manipulation of inventory figures. The cash flow from delaying accounts payable payments and issuing long term debt is used solely for stock buybacks. This creates a dwindling supply of stock and an artificial demand. Thus a $500 stock price and a ridiculous market cap ... like all Ponzi schemes, it does not collapse until liquidity dries up. There will be lawsuits inevitably because directors were on one hand approving stock buybacks and on the other dumping their own stock and making small fortunes. This company and it's manipulation is why people hate Wall Street
    Feb 2, 2014. 01:19 PM | Likes Like |Link to Comment
  • AutoZone Sets A New High [View article]
    I agree ... He should be in jail ... unfortunately it is legal to destroy companies by over leveraging to buyback stock and reap huge rewards from stock option grants.
    Jan 28, 2014. 04:58 PM | Likes Like |Link to Comment
  • AutoZone Sets A New High [View article]
    They generate most of their cash by not paying their suppliers ... who they forced to consign inventory until sold and then still don't pay them. Take a look at Accounts Receivables vrs Accounts Payables ... Ever seen anything like that?

    The other way they generate cash is also through continued borrowing.

    All Ponzi schemes continue until liquidity runs dry. The Crash will be sudden and quick... but certainly not unexpected

    So when will the experience price inflation on their inventory of out dated auto parts. The real question is when will they stop manipulating earnings this way... Every quarter they are tacking 10-20 million in earnings from this manipulation.

    A market cap of $10 Billion+ and a NEGATIVE $2 BILLION tangible book value .. what a freakin Joke .... EPS is not everything and cash on hand + accounts receivables is pathetic.

    Get out of the ZONE .... AUTOZONE!
    Jan 24, 2014. 11:58 PM | Likes Like |Link to Comment
  • AutoZone Sets A New High [View article]
    Autozone is the most crooked company on Wall Street. They manipulate their earnings by changing the way they track inventory combined with a ridiculously leveraged stock buyback. Look at AZO's balance sheet ... it is disgusting to call this stock an investment!

    See Note below ... This company will implode ala WORLDCOM, ENRON, FANNIE MAE, FREDDIE MAC.

    LIFO

    We state our inventories at the lower of cost or market using the last-in, first-out (“LIFO”) method for domestic merchandise and the first-in, first out (“FIFO”) method for Mexico inventories. Due to price deflation on our merchandise purchases, our domestic inventory balances are effectively maintained under the FIFO method. We do not write up inventory for favorable LIFO adjustments, and due to price deflation, LIFO costs of our domestic inventories exceed replacement costs by $283.7 million at August 31, 2013, calculated using the dollar value method.
    Jan 24, 2014. 03:10 PM | Likes Like |Link to Comment
  • Perceptron's Pivotal Inflection Point Could Lead To 75% Upside In 2014 [View article]
    I agree that PRCP still offers potential upside but the time to have bought shares is when no one was paying attention to them

    http://seekingalpha.co...

    Now with price having moved significantly potential volatility to both the upside and downside are increased.

    If you want another low float stock that is ridiculously undervalued, no one is paying attention to it, and because of the Utica shale drilling boom is heading towards several inflection points sometime this year. Check out AWX

    Aloha in Him
    Edward
    Jan 22, 2014. 09:57 PM | 1 Like Like |Link to Comment
  • Stocks 2014: Investing For Growth - The Power And Protection Of High Compounding Earnings Growth - Part 2 [View article]
    The only problem with AZO ... is EPS figures are manipulated by 2 a ridiculously leveraged buyback and inventory figures that are manipulated which cause Earnings to look a lot better then they really are. AZO is a very manipulated stock and company and is far from being a safe and conservative investment. This stock will one day implode ala WorldCom, Enron, Fannie Mae, Freddie Mac.

    All these stocks were the darlings of Wall Street.

    Look at AZO accounts receivables vrs accounts payables.

    How does that work?

    I suggest you find a better example
    Jan 16, 2014. 02:54 PM | 2 Likes Like |Link to Comment
  • AutoZone's Buyback Plan Is A Winner [View article]
    A disclosure buried in a footnote of a 10-Q filing does not mean they are not using this accounting gimmick to manipulate earnings. They are overstating ending inventory by $283 million which has inflated earnings by that much. When will they be experiencing price inflation on this inventory.... If you notice each quarter this figure continues to grow not shrink. It is manipulation plain and simple just as they have used the buyback $'s to manipulate the price of the stock. I don't know exactly when, but inevitably this stock will implode like all the other Ponzi style schemes on Wall Street
    Dec 24, 2013. 02:49 PM | Likes Like |Link to Comment
  • AutoZone's Buyback Plan Is A Winner [View article]
    They do issue new shares in the form of options to insiders and use the buyback to cash those shares in. They are all using the scheme to line their pockets. Congrats on cashing out ... one day you will be thankful that you didn't get too greedy and hold on longer.
    Dec 24, 2013. 02:44 PM | Likes Like |Link to Comment
  • My 2014 Growth Stock Picks [View article]
    AZO undervalued ... what a joke! ... You need new metrics. AZO is a bloated pig stock that probably will go higher because of manipulated earnings #'s and continued buybacks ... see comments below

    Everyone loved WorldCom, Enron and Madoff until they imploded. Insiders and Eddie Lampart have all been made rich at the expense of AZO debt holders and AZO suppliers. To imply that AZO stock is undervalued is a joke. How can a company that has Cash/Receivables of 350 million vrs Payables/Debt of 8 Billion be a sound safe investment.

    The only reason Earnings are growing is because AZO is manipulating inventory figures (by their own admission)

    See the following notes from their 10Q
    We state our inventories at the lower of cost or market using the last-in, first-out (“LIFO”) method for domestic merchandise and the first-in, first out (“FIFO”) method for Mexico inventories. Due to price deflation on our merchandise purchases, our domestic inventory balances are effectively maintained under the FIFO method. We do not write up inventory for favorable LIFO adjustments, and due to price deflation, >!>!>!>LIFO costs of our domestic inventories exceed replacement costs<!<!<!&l... by $283.7 million at August 31, 2013, calculated using the dollar value method.

    How are they going to experience price inflation on out dated parts. By doing this they can decrease their Cost of goods sold and Juice their reported profits. Notice the adjustment is $283 million!!!! that is ridiculous

    AZO and its board have taken a quality company and squeezed every last $ out of it for the sole purpose of buying back stock creating a legal Ponzi scheme that makes things look a lot brighter then they really are.

    Insiders and Fast Eddie have already cashed out ... the only reason they need to keep it going is to delay the personal lawsuits they will face once this toilet paper stock implodes
    Dec 20, 2013. 09:47 AM | 4 Likes Like |Link to Comment
  • AutoZone's Buyback Plan Is A Winner [View article]
    Everyone loved WorldCom, Enron and Madoff until they imploded. Insiders and Eddie Lampart have all been made rich at the expense of AZO debt holders and AZO suppliers. To imply that AZO stock is undervalued and the continued buyback is comparable to Buffet buying back stock is a joke. How can a company that has Cash/Receivables of 350 million vrs Payables/Debt of 8 Billion be a sound safe investment.

    The only reason Earnings are growing is because AZO is manipulating inventory figures (by their own admission)

    See the following notes from their 10Q
    We state our inventories at the lower of cost or market using the last-in, first-out (“LIFO”) method for domestic merchandise and the first-in, first out (“FIFO”) method for Mexico inventories. Due to price deflation on our merchandise purchases, our domestic inventory balances are effectively maintained under the FIFO method. We do not write up inventory for favorable LIFO adjustments, and due to price deflation, LIFO costs of our domestic inventories exceed replacement costs by $283.7 million at August 31, 2013, calculated using the dollar value method.

    How are they going to experience price inflation on out dated parts. By doing this they can decrease their Cost of goods sold and Juice their reported profits. Notice the adjustment is $283 million!!!! that is ridiculous

    AZO and its board have taken a quality company and squeezed every last $ out of it for the sole purpose of buying back stock creating a legal Ponzi scheme that makes things look a lot brighter then they really are.

    Insiders and Fast Eddie have already cashed out ... the only reason they need to keep it going is to delay the personal lawsuits they will face once this toilet paper stock implodes
    Dec 17, 2013. 10:34 PM | 3 Likes Like |Link to Comment
  • Perceptron: Small Company, Limitless Potential [View article]
    Welcome to the party ... a little late in getting here :0)
    Oct 31, 2013. 11:30 PM | Likes Like |Link to Comment
  • Perceptron Tumbles After Q2 Results, Now What? [View article]
    Short it at $13 if you think it was overvalued at $9 it must be overvalued here?

    You are the one who owe your readers an apology for this lame article and statement

    Perceptron Tumbles After Q2 Results, Now What?

    Had you told them to BUY they would have made 100% and you would have had my kudos.
    Oct 24, 2013. 04:45 AM | Likes Like |Link to Comment
  • Avalon Holdings: A Unique Way To Capitalize On The Oil & Gas Boom In Ohio, Pennsylvania [View article]
    I suppose only time will tell, but from my point of view, Ron Klingle (the CEO & controlling shareholder) has done a lot in the last few years to position AWX so that there will be future profits that can ultimately distributed to shareholders either in the form of dividends or more importantly a higher stock price. There are hundreds of companies that trade on various exchanges that never give a dime to shareholders. AWX does not pay regular dividends but has in the past paid a $4 dividend to shareholders of the original American Waste. Wall Street currently values AWX at $20 million ... my whole investment philosophy on this company originally was that it was an investment as an undervalued asset play with little downside risk, but limited upside growth from their 2 business lines. With what is going on today in Ohio in regards to an Oil & Gas Boom, I definitely see AWX as a real growth story over the next 2-5 years. They will grow revenues in both of their business lines, they are opening up a whole new revenue stream with the injection wells they are building (open by Jan 2014) and are looking to acquire existing wells from a bankrupt company. The real wildcard is that Halcon Resources should be generating a future royalty stream for AWX from oil wells that are already drilled on property owned by AWX and are currently at the resting stage. If these wells are fruitful you could see $5-15 million a year in revenues from the royalties alone. Think what the EPS figures will look like then with only 3.8 million shares outstanding. Has anyone considered the fact that their may be oil under the Buhl golf course that was bought on the cheap just a few years ago. Everyone talks stink about the CEO as he quietly goes about building real long term shareholder value. I am just happy that I have been able to build a sizable position on the cheap when no one wanted the shares of AWX.
    Oct 24, 2013. 04:28 AM | Likes Like |Link to Comment
COMMENTS STATS
36 Comments
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