Technical Trade Alerts on Auto Parts Store Stocks: PBY, AAP, ORLY, AZO, PRTS, GPC for Nov. 3

Pep Boys: Manny, Moe & Jack (PBY) Trade Alert – PBY Reorganizes Into Six Divisions

Pep Boys: Manny, Moe & Jack (PBY) shares closed last Friday at $4.82, up 15.59% from the previous close of $4.17. Pep Boys, together with its subsidiaries, operates as an automotive retail and service chain in the United States and Puerto Rico.

Instead of eight divisions, the company recently reorganized its field structure into six. Under the new system, one divisional vice president will be responsible for service, retail and commercial operations at all divisions. Further, one area director will be responsible for all lines of business for an average of nine stores.

According to the company, the changes will allow its officials in the field to oversee smaller geographic areas, allowing them to build stronger relationships with store employees and customers. Under the previous system, area directors were responsible for either service or retail for 14 to 19 stores.

Pep Boys' inventory is recently recorded on the balance sheet at $561 million. With the stock appearing to have a low valuation, S&P 500 recently provided research notes claiming the shares are selling below liquidation value and placed a $9 price target. The stock's current 29 cent cash dividend yields 8%, and according to analysts, the fact that it has been maintained is a good sign that the stock is in much better shape than its current market perception.

Pep Boys engages principally in the retail sale of automotive parts, tires and accessories, automotive repairs and maintenance, and the installation of parts.

The company's products include tires; batteries; new and remanufactured parts for domestic and import vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and non-automotive merchandise for automotive do-it-yourself customers, such as generators, power tools, personal transportation products and canopies.

It also sells wheel covers, water pumps, cooling system parts, air filters, anti-freeze, chemicals, commercial vehicle axles, lubricants, oils, oil filters, oil treatments, transmission fluids, wiper blades, alternators, battery booster packs, starters, power steering hoses, power steering pumps, brakes, ignition and paints.

As of February 2, 2008, the company operated 562 stores consisting of 552 supercenters and one service and tire center, nine non-service/non-tire format Pep Boys Express stores, and approximately 5,845 service bays.

In today's daily chart, PBY's MACD reflects a weak bullish signal with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading near its upper Bollinger Band, the stock reflects a high price relative to its recent price trend. With share prices currently above the stock's 13-day moving average, a bullish trend is generally indicated.

Advance Auto Parts Inc. (AAP) Trade Alert – AAP Reports Q3 Financial Results

Advance Auto Parts Inc. (AAP) shares closed last Friday at $31.20, up 15.26% from the previous close of $27.07. Advance Auto Parts operates as a specialty retailer of automotive parts, accessories and maintenance items for do-it-yourself and do-it-for-me customers in the automotive aftermarket industry.

The company recently announced its financial results for the third quarter ended October 4, 2008. Its third-quarter earnings per diluted share (EPS) increased 4% to 59 cents compared to 57 cents for the same period last year. The increase was primarily attributable to a reduced share count as a result of share repurchases. Its EPS increased 16% through the first three quarters of the year, driven by a reduction in share count as a result of share repurchases and increased operating income.

The company's total revenue for the third quarter also increased 2.6% to $1.19 billion, compared with revenue of $1.16 billion in the third quarter of fiscal year 2007. The increase reflected the net addition of 124 new stores in the past 12 months and a comparable store sales decrease of 0.1% during the quarter compared to an increase of 1.0% in the third quarter last year.

Advance Auto Parts offers replacement parts, accessories, maintenance items, batteries and automotive chemicals for cars and light trucks, including pickup trucks, vans, minivans and sport utility vehicles.

The company operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores that offer a range of automotive replacement parts, including filters, radiators, brake pads, belts and hoses, radiator hoses, starters, alternators, batteries, shock absorbers, struts, suspension parts spark plugs, transmissions, clutches, electronic ignition components, oil and transmission fluid, lighting, and wash and waxes. As of December 29, 2007, this segment operated 3,153 stores within the United States, Puerto Rico and the Virgin Islands under the trade names 'Advance Auto Parts,’ 'Advance Discount Auto Parts' and 'Western Auto.’

The AI segment operates stores that offer replacement parts for both domestic and imported cars and light trucks to the commercial market, as well as to warehouse distributors and jobbers in North America. As of December 29, 2007, this segment operated 108 stores under the 'Autopart International' trade name.

In today's daily chart, AAP's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently above the stock's 13-day moving average, a bullish trend is generally indicated.

O'Reilly Automotive Inc. (ORLY) Trade Alert – ORLY Trims 2008 Full-year Profit Outlook

O'Reilly Automotive Inc. (ORLY) shares closed last Friday at $27.11, up 8.18% from the previous close of $25.06. O'Reilly Automotive operates as a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States.

As the company recently works to combine stores of a competitor it bought out in July, it trimmed its full-year profit forecast. It now expects to post profit for the year between $1.45 and $1.49 per share. According to the company, excluding 11 cents in charges related to the acquisition of CSK Automotive, adjusted profit is now expected to range between $1.56 and $1.60 per share, compared to July expectation in the range of $1.57 to $1.61 per share after adjusting for the CSK acquisition. Analysts polled by Thomson Reuters, on average, expect a profit of $1.57 per share.

The company also announced its third-quarter profit declined 22% as it initially absorbed the operations of a competitor it bought out during the period. Net income for the three months ended September 30 was $41.4 million, or 31 cents per share, down from $53.1 million, or 46 cents per share, for the same period last year. The per-share results reflect a 17% increase in the number of outstanding shares year-over-year, and include a series of charges related to the July acquisition of CSK Automotive Inc.

O'Reilly Automotive's stores offer new and remanufactured automotive hard parts, including alternators, starters, fuel pumps, water pumps, brake shoes and pads, belts, hoses, chassis parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products; accessories, such as floor mats and seat covers; and a line of auto body paint and related materials, automotive tools and professional service equipment.

The company's stores sell a selection of brand name and private label products to do-it-yourself customers and professional installers. As of December 31, 2007, it operated 1,830 stores.

In today's daily chart, ORLY's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently above the stock's 13-day moving average, a bullish trend is generally indicated.

AutoZone Inc. (AZO) Trade Alert – AZO Reports Solid Growth for Fiscal 2008

AutoZone Inc. (AZO) shares last Friday at $127.29, up 4.25% from the previous close of $122.10. AutoZone operates as a specialty retailer and distributor of automotive replacement parts and accessories.

AutoZone achieved a solid performance in fiscal 2008 delivering record earnings of $642 million and sales growth of $353 million over the prior year. The fiscal year was completed with solid growth in its commercial sales and an increase in its retail sales. For the year ended August 30, 2008, AutoZone reported net sales of $6.523 billion compared with $6.170 billion for the year ended August 25, 2007, a 5.7% increase from fiscal 2007. This growth was primarily driven by an increase in the number of open stores, a 1.9% increase from the addition of the 53rd week and domestic same store sales increase of 0.4%.

The company's gross profit for fiscal 2008 was $3.268 billion, or 50.1% of net sales, compared with $3.064 billion, or 49.7% of net sales, for fiscal 2007. The increase in gross profit as a percent of net sales was due to the positive impact of category management efforts, partially offset by increased distribution expense relating to higher fuel costs.

As of August 30, 2008, AutoZone operated 4,092 domestic stores and 148 in Mexico, compared with 3,933 domestic stores and 123 in Mexico at August 25, 2007.

The company's stores offer various products primarily to do-it-yourself customers for use in cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.

Its automotive hard parts product line includes A/C compressors; alternators; batteries and accessories; brake drums, rotors, shoes, and pads; carburetors; clutches; CV axles; engines; fuel pumps; mufflers; shock absorbers and struts; starters; and water pumps.

The company's maintenance items include antifreeze and windshield washer fluid; belts and hoses; chemicals, including brake and power steering fluid, oil and fuel additives; fuses; lighting; oil and transmission fluids; oil, air, fuel and transmission filters; oxygen sensors; protectants and cleaners; refrigerant and accessories; sealants and adhesives; spark plugs and wires; wash and wax; and windshield wipers.

AutoZone's accessories and non-automotive product line comprises air fresheners, cell phone accessories, drinks and snacks, floor mats, hand cleaners, neon lighting, mirrors, paint and accessories, performance products, seat covers, steering wheel covers, stereos and tools.

It also offers commercial sales program that provides commercial credit, and delivery of parts and other products to local, regional and national repair garages, dealers and service stations.

In addition, it sells the ALLDATA brand automotive diagnostic and repair software, as well as diagnostic and repair information, auto and light truck parts, and accessories on the Web at autozone.com.

As of August 25, 2007, the company operated 3,933 stores in the United States and Puerto Rico, and 123 stores in Mexico.

In today's daily chart, AZO's Bollinger Bands indicate above normal volatility as reflected by an increase in distance between the upper and lower bands. Trading near its upper Bollinger Band, the stock reflects a high price relative to its recent price trend. MACD reflects a weak bullish signal, with the indicator above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently above the stock's 13-day moving average, a bullish trend is reflected, strengthened by rising moving averages, indicating a significant buying momentum for the stock.

U.S. Auto Parts Network Inc. (PRTS) Trade Alert – PRTS Reports Lower Q3 Financial Results

U.S. Auto Parts Network Inc. (PRTS) shares closed last Friday at $2.04, down 2.86% from the previous close of $2.10. U.S. Auto Parts operates as an online retailer of aftermarket auto parts and accessories primarily in the United States.

The company recently reported financial results for the third quarter ended September 30, 2008. Its net sales for the third quarter were $36.6 million, a decrease of 3.2% from $37.8 million for the prior year period and a decrease of 15.1% from $43.1 million for the second quarter of 2008. Net loss for the third quarter of 2008 was $0.5 million, or 2 cents per diluted share, compared to net income of $0.9 million, or 3 cents per diluted share for the prior year period.

Diluted earnings per share for the quarters ended September 30, 2008, and 2007 included amortization expense related to intangibles of $0.4 million or 1 cent per diluted share and $2.1 million or 7 cents per diluted share, respectively.

U.S. Auto Parts offers body parts, engine parts, performance parts and accessories. Its body parts comprise bumpers, doors, door handles, fenders, grilles, hoods, lamps, mirrors, tailgates, wheels and window regulators; engine parts include alternators, brake discs, catalytic converters, climate control, clutches, drive shafts, exhausts, fuel injection/delivery, headers, oxygen sensors, radiators and shocks and struts; and accessories consist of air deflectors, bug shields, car bras, car covers, cargo liners, cold air intakes, floor mats/carpeting, nerf bars, running boards, seat covers, tonneau covers and vent visors.

The company principally sells its products to individual consumers through its network of Web sites and online marketplaces that primarily include partstrain.com and autopartswarehouse.com, as well as through its wholesale sales channel, which sells its products to auto body shops, collision repair shops, and auto parts wholesale distributors. It also has operations in Philippines, India and Canada.

In today's daily chart, PRTS' MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. With share prices currently above the stock's 13-day moving average, a bullish trend is reflected, strengthened by rising moving averages, indicating a significant buying momentum for the stock.

Genuine Parts Company (GPC) Trade Alert – GPC's Q3 Earnings Increase on Strong Revenue Growth of Electrical and Industrial Units

Genuine Parts Company (GPC) shares closed last Friday at $39.35, up 4.18% from the previous close of $37.77. Genuine Parts engages in the distribution of automotive and industrial replacement parts, office products, and electrical/electronic materials in the United States, Canada and Mexico.

As revenue in its electrical and industrial units recently offset weak results in its automotive group, the company reported its third quarter earnings increased. The company said earnings for the quarter ended September 30 climbed 2% to $131 million, or 81 cents per share, from $128.6 million, or 76 cents per share, in the same quarter last year. Revenue also increased 3% to $2.88 billion from $2.8 billion a year ago. Analysts polled by Thomson Reuters expected profit of 78 cents per share on $2.89 billion in revenue.

The company also reported its net income for the third quarter was $131.0 million, an increase of 2% over $128.6 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 81 cents, up 7% from 76 cents for the third quarter last year.

For the nine months ended September 30, 2008, total sales also increased 3% to $8.5 billion, compared to the same period in 2007, while net income for the nine months was $387.6 million, an increase of 2% over $380.3 million for the previous year. Earnings per share on a diluted basis also increased 6% to $2.36, from $2.23 for the same period last year.

Genuine Parts operates through four groups: Automotive Parts Group, Industrial Parts Group, Office Products Group and Electrical/Electronic Materials Group. The Automotive Parts Group supplies approximately 350,000 replacement parts other than body parts for imported vehicles, trucks, SUVs, buses, motorcycles, and recreational and farm vehicles. It also retails auto parts under the NAPA brand. This segment serves repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns and individuals.

The Industrial Parts Group offers various industrial bearings; mechanical power transmission equipment; industrial automation; hose, hydraulic and pneumatic components; and industrial products and material handling products. Its products include hoses, belts, bearings, pulleys, pumps, valves, chains, gears, sprockets, speed reducers and electric motors. This segment's customers consist of automotive, chemical, food, forest product, metal, paper, mining, petrochemical and pharmaceutical manufacturers.

The Office Products Group distributes computer supplies, office furniture, office machines, general office supplies, school supplies, healthcare products, janitorial supplies and breakroom supplies.

The Electrical/Electronic Materials Group offers magnet wire, conductive materials, insulating and shielding materials, assembly tools, test equipment, adhesives and chemicals, pressure sensitive tapes, solder, anti static products, and thermal management products to electrical and electronic manufacturers.

In today's daily chart, GPC's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading near its upper Bollinger Band, the stock reflects a high price relative to its recent price trend. MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently above the stock's 13-day moving average, the stock reflects a bullish trend, strengthened by rising moving averages, indicating a significant buying momentum for the stock.

Beacon Equity Research Disclosure

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT OR WEB SITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and Web site have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

BeaconEquity.com is a Web site wholly owned by BlueWave Advisors, LLC. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. BlueWave Advisors LLC, its principal and/or its affiliates will hold positions in the company profiled and may buy or sell securities at any time without notice.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company's most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company's plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the Web sites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.