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MarketFoolery

MarketFoolery: 01.30.2012

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 30 January 2012

⏱️ 16 minutes

🧾️ Download transcript

Summary

Pep Boys gets acquired. Wendy's serves up earnings. And beer loses some of its buzz.

Transcript

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0:00.0

It's Monday, January 30th, and this is Market Fullry.

0:05.0

I'm Chris Ellen joining me in studio today for Motleyville Stock Advisor, Jason Moser,

0:08.0

and for Motleyville Inside Value, Joe Maker, gentlemen, good weekends?

0:12.0

Very good weekends. Awesome. All right, we are going to discuss

0:16.4

the alcohol industry and the fast food industry. We do not have samples in the studio just in

0:20.9

case anyone was wondering. But we are going to start with

0:23.7

pet boys shares of pet boys up more than 20% this morning on the news that the

0:28.8

auto parts chain is being taken private by the Gores group, that's a private equity firm, for just under 800

0:35.4

million.

0:36.4

Joe, I'll start with you.

0:37.4

Would, surprised by this news or no?

0:39.4

No, I'm not too surprised.

0:40.6

I mean, this has kind of been a hot space, broadly speaking, auto repair. Reason being

0:44.9

no one is buying new cars. Everyone's pushing off that decision for as long as possible to save money these days.

0:50.5

The average U.S. car is now almost 11 years old, which is the oldest it's ever been.

0:55.0

You know, an 11-year-old car certainly brings down a lot of parts.

1:00.0

And certainly mine does.

1:02.0

Definitely done very well.

1:04.0

And you know, when you look at private equity targets, something like an auto parts retailer is kind of a classic example of what they look for, where they can go in, fire a bunch of people, streamline operations.

1:15.7

I'm going to go on a limb, no offense to Pep Boys, and assume that there are probably some

1:19.2

efficiencies that could be wrung out on the tech side.

1:21.7

They'll go in and do that, under invest in the brand,

...

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