Well here we go again! 

mark's picture
Article Link: 

Well here we go again!  Mr. Market is now moving to an optimistic view on AAP.

Up and down.  Up and down.  The market for AAP is like a yo yo.   

The integration of the General Parts acquisition is still moving along. Acquisitions don't get purchased and "bam" the benefits are immediately produced.  Like any good project, integration takes time and AAP is no different.  Investment bankers always oversell the time to integrate major acquisitions.

Take a long term view of AAP and consider the progress they are making.  They are paying down their acquisition debt, keeping a lid on capital expenditures, integrating operations, and building the commercial side of their business.  The average life of a car is getting longer.  While AAP is up from its 52 week low, it is still significantly below the high.

AAP still has work to do. But, you don't get a "deal" by buying a company who is already operating at their peak ability.  The market will have already fully valued it.  You have to buy when others can't see the value.

Open your eyes and you'll be surprised what you see!

Copyright 2017 Mark T. McLaren