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Stocks I Bought On The Dip: Genuine Parts Company

Jun. 04, 2020 4:33 PM ETGenuine Parts Company (GPC) Stock16 Comments


  • I bought 19 S&P 500 stocks during the March sell-off.
  • I share my buy, sell, and hold prices for the stock, as well as share the basic process for my analysis.
  • Currently, the stock is 'Hold', but in the case of a double-dip, it could become a 'Buy' again.
  • I also discuss dividend investing and how I'm sometimes an "accidental" dividend investor.
  • Looking for a helping hand in the market? Members of The Cyclical Investor’s Club get exclusive ideas and guidance to navigate any climate. Get started today »


I have two core methods of sharing my investing ideas and strategies on Seeking Alpha. The first method is via public articles like this one, and the second is via the Cyclical Investor's Club. Since launching the Cyclical Investor's Club on 1/12/19, I've always tried to strike a reasonable balance between my public ideas, which everyone can read for free, and the private ideas, shared exclusively in the CIC. Over time, I have decided to break these ideas into two distinct categories where ideas about stocks that comprise the S&P 500 are made public and all the rest remain private. I've tried to abstain from first sharing an idea in the CIC, and then, after the price has run up, sharing it with the public because I simply didn't like the way it felt to me ethically.

The recent market dive happened so quickly, however, that there was no way I could write public articles in time for all the stocks I purchased in March. From February 28 through the end of March, I purchased 33 stocks (plus suggested members buy Berkshire Hathaway (BRK.B, BRK.A), which I already owned), and most of the stocks were purchased in the five trading days nearest the bottom of the market's dip. I could barely keep up with the purchases via the real-time chat function in the Cyclical Investor's Club, much less write full public articles about them all. Of those 34 stocks, 19 of them were components of the S&P 500, and I only managed to write about one of them publicly - Comcast (CMCSA) - at the very beginning of the downturn. So far, in addition to Comcast, I have now covered Hologic (HOLX), FLIR Systems (FLIR), Sysco Corporation (SYY), Tractor

If you have found my strategies interesting, useful, or profitable, consider supporting my continued research by joining the Cyclical Investor's Club. It's only $29/month, and it's where I share my latest research and exclusive small-and-midcap ideas. Two-week trials are free.

This article was written by

Cory Cramer profile picture

Cory Cramer is an award-winning political scientist and a long-only cyclical investor capitalizing on market cycles. He has been investing since the 1990s and still invests his own money in the companies he writes about.

Cory leads the investing group The Cyclical Investor's Club where he shares his unique approach to estimating the fair value of stocks by capitalizing on downcycles for undervalued companies. He teaches 4 unique cyclical strategies, offers a master valuation spreadsheet, and is available to answer any questions via chat or direct message. Learn more.

Analyst’s Disclosure: I am/we are long SYY, FLIR, GPC, ALGN, CMCSA, BRK.B, TSCO, MCHP, HOLX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (16)

Yields4Travel profile picture
Thanks Cory for highlighting the gift the market provided in GPC. Gotta be ready to buy when the opportunity presents itself!! I missed my buying opportunity. Not enough dry powder available.
Cory Cramer profile picture
I think this one might have been the last stock I was able to buy during the sell-off. Got a bit lucky it finally crossed my buy threshold at the last minute.
Yields4Travel profile picture
I have add-ons (increase share count to my portfolio) set up as limit orders to catch low prices.
ijeff profile picture
Owned this one for a few years. Never got it at that $50 price available in late March (too many stocks to buy too little time!). It is a fine example of a good stock to buy at a fire sale price. Great job Cory finding a somewhat old stodgy stock at a price that should delivery above average returns for years to come. Opportunities like this don't come often. I'll be surprised if you see that $52.50 price anytime soon or at least not until the next panic sell.
Cory Cramer profile picture
Thanks, I think we'll probably require some sort of double-dip sell-off or recession within the next year to get it near that price. One of the things I really liked about my buying strategy during this recent decline is that I ended up getting a decent variety of businesses even though I didn't get any big tech, or drug stocks, or COVID safety plays. Since I didn't set out to buy any particular group of stocks, and just focused on the ones that met my standards, I really just let the market come to me and took what it gave me.
ijeff profile picture
My big failure in March was lack of preparation. I really did not have a solid, detailed game plan as you did. I didn't set buy priorities (in case too many stocks came into buy range at the same time) and for stocks where I did have buy prices, my prices were set way too high. I didn't have the patience to let them come to me. In other words, I never expected them to drop as far as they did and what I did buy I bought too soon. Its been a good learning experience for me.

Its not all bad news. I did manage to pick up some new stocks and add to some existing stocks at some cheap prices; i.e., ROKU, WPC, LOW, MAIN.
Cory Cramer profile picture
I wasn't as prepared as I could have been. I honestly worked 10 hours a day from February through April without a day off, and I felt like I was perpetually behind, or just barely keeping up with the market/virus/government response. It feels weird now to take days off :)
Wapiti19 profile picture
My dream prices triggered @ March 9...ouch.
Cory Cramer profile picture
This one was a little tricky because their earnings growth was pretty slow. Stocks like that tend to look good on the surface with a relatively low PE, but when growth is slower like that, some of the low PE is justified, so I aim for a little lower price.
MoneyPig profile picture
Too, I went on a shopping spree. I picked GPC up in the 60s.

Yes, some stocks go down more than others in recessions. Doesn't take much analysis to know this. And other stocks actually go up during recessions.
Cory Cramer profile picture
I just create a shopping list of acceptable businesses that have experienced at least one recession. Then I wait for the prices I think have a reasonable chance of occurring to come to me. I take what the market gives me, but I try not to buy individual stocks until they look like a good deal. It's pretty basic value investing, really.
so you're saying if this stock drops 45%, there's a good chance that it will increase over time? Genius.

I really liked your analysis where you say that a drop and an increase are both in the table. I mean, amazing, how do you guys come up with this stuff. Let me sign up for your service.

Though if you have done so well, do you really need my measly 29 dollars.
Cory Cramer profile picture
Actually, I'm saying if you buy at a good price you will likely OUTPERFORM with this stock.

My point when I said a drop or an increase are both on the table is that there is equal chance of volatility in both directions. That means current holders of the stock should be prepared to sell if the price gets too high, and people waiting should be prepared to buy if the opposite happens. And I shared specific prices.
MoneyPig profile picture
Eh, I just buy and buy and buy. GPC is a buy low sell low business with very low margins on very high volumes backed by a software they spent 100 years developing.
Saying that the prices on a name could go up or come down 45% is not exactly specific. I can say that for 99% of the market. I try to read through the articles to learn something, saying that a company could go up or down 45% doesn’t do much for me. Anyway, good luck with your investments. I hope everyone makes money.
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