tradealarm

AutoZone Is Headed for a Near-Term Breakdown: Time to Short

Let's see major holders of AZO at Yahoo!Financial. Institutions hold 108% of float shares!!! Short squeezed? Absolutely!

* RBS PARTNERS, L.P. hold 40.67%, 23,370,297 shares. This hedge fund is backed by billionaire Edward Lampert.

Short interest rate are so high that this offers market maker a good chance to squeeze your short position.

* Shares Outstanding5:54.69M
* Float:54.08M
* Shares Short (as of 10-Mar-09)3:6.22M
* Short Ratio (as of 10-Mar-09)3:2.8
* Short % of Float (as of 10-Mar-09)3:11.50%


On Mar 08 09:45 PM texas6006 wrote:

> All these things could have been said about AZO 3 months ago. You
> did not even mention that this Company has the worst balance sheet
> ever, loaded with debt in this tight credit environment. The fact
> is that it keeps defying gravity because everyone knows what is wrong
> with the Company and take the same (sell) side amd we end up with
> too many shorts. My March puts are expiring worthless in this kind
> of market. That is just insane.

AutoZone Is Headed for a Near-Term Breakdown: Time to Short

AZO is not a well-run company at all. Its inventory kept on increasing(in million US$)
* 1,663.86/2005
* 1,846.65/2006
* 2,007.43/2007
* 2,150.11/2008


On Mar 09 02:45 PM TBill wrote:

> Yup, you are crazy. Well, not all that crazy as you said for long
> term investors to keep the stock. Who knows where it will go short
> term?
> AZO is a well run company, doing a much better job than PBY. [Shorting
> PBY might be a good hedge for AZO.]
> I've owned it for a while, very happy with it, but due to market
> conditions have sold out of the money calls on it. Keep watching
> the top and bottom lines. As long as the numbers hold up, keep the
> stock.

AutoZone Is Headed for a Near-Term Breakdown: Time to Short

You got the point. AZO has too high leverage.


On Mar 08 05:00 PM Pj568 wrote:

> Seems like a reasonable short as the AZO buyback policy has levered
> up the balance sheet to 85x with no working capital and 300M of debt
> due this year. Don't understand why they want to take this gamble.