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.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
At the time of publication, Heller was long XXXX.

Jonathan Heller, CFA, is president of KEJ Financial Advisors, his fee-only financial planning company. Jon spent 17 years at Bloomberg Financial Markets in various roles, from 1989 until 2005. He ran Bloomberg's Equity Fundamental Research Department from 1994 until 1998, when he assumed responsibility for Bloomberg's Equity Data Research Department. In 2001, he joined Bloomberg's Publishing group as senior markets editor and writer for Bloomberg Personal Finance Magazine, and an associate editor and contributor for Bloomberg Markets Magazine. In 2005, he joined SEI Investments as director of investment communications within SEI's Investment Management Unit.

Jon is also the founder of the Cheap Stocks Web site, a site dedicated to deep-value investing. He has an undergraduate degree from Grove City College and an MBA from Rider University, where he has also served on the adjunct faculty; he is also a CFA charter holder.

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