This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Mannie, Moe and Slack?

Stocks in this article: PBY

NEW YORK ( TheStreet) - Today will likely be a difficult trading day for auto-repair company Pep Boys - Manny, Moe & Jack (PBY), which put up worse-than-expected third-quarter numbers following yesterday's market close.

Revenue, expected to be $540 million, came in at $525.7 million, and earnings per share of 10 cents were below the 19 cent consensus estimate. Shares fell 7% in after-hours trading.

It's been a difficult couple of years for this company, which at times has appeared to be attractive as a value play. Pep Boys exchanged hands for more than $35 a share back in 1996, and it has been a roller-coaster ride ever since.

The company long paid cash dividends, but that ended in 2012. The same year, the company was set to be acquired by Gores Group for $15 a share, which I believed at the time to be a steal for Gores. But the following May, Gores got cold feet; scared by Pep Boys operating performance, and walked away from the deal. In turn, Pep Boys walked away from that broken deal with a $50 million breakup fee, which allowed it to reduce debt to the $200 million range where it now stands. PBY Chart PBY data by YCharts

With headquarters in Philadelphia, Pep Boys is a well-known regional player in the auto-repair and auto-parts retail sector, with 750 locations in 35 states and Puerto Rico. The heaviest concentration of stores is in California (131), Florida (91), Texas (57), Pennsylvania (55), Georgia (49), New Jersey (40), Alabama (38), New York (37), and Illinois (35), with those eight states representing more than 70% of total stores. I've frequented our local Pep Boys often over the years, and it is one of the few places that will accept used motor oil from those of us weekend grease monkeys who still enjoy changing our own oil.

From a value perspective, one of the company's compelling factors has been its owned real estate. At year-end 2012, Pep Boys owned 232 locations, a 300,000 square-foot corporate headquarters and more than 1.4 million square feet of warehouse space in Georgia, Texas, Indiana, and New York.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs