The real estate portfolio may provide the company with some monetization options down the road. Or, if the company can get its operating performance on track, the real estate might make the company attractive to potential acquirers.
Pep Boys ended its latest quarter with $65 million in cash and $199 million in debt, and as of yesterday's closing price, trades at 1.22 times tangible book value per share. I'd be more interested in considering a new position -- I have owned shares previously -- if the company traded below tangible book. It may move closer to that level today.
Pep Boys isn't a slam dunk; it is a fairly well-known brand regionally, but hasn't been hitting on all cylinders for many years.
At the time of publication, the author held no positions in any of the stocks mentioned.Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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