Friday, October 30, 2015

Pep Boys Update

I wrote this post on the Pep Boys automotive chain in 2012.  I called it a common sense real estate value play on all their store locations.  When I wrote my article Pep Boys (ticker symbol PBY) was trading for $8.29 per share.

Bridgestone has agreed to buy Pep Boys for $15 per share.

If you followed my idea you earned a 68.72% return in about three years or 22.9% per year.  Not a bad return for a token price which really amounted to a perpetual call on the company's stock.  In other words, buying a LEAP call on PBY with no expiration date.  Quite a safe and tidy investment.

Thanks Manny, Moe and Jack.

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