Is anyone out there? I would have figured that after the big shakeup at DAP, any shareholders would be on here discussing matters, but I guess no one bothers with poor old Discount Auto anymore.
Yeah, I'm here. DAP just doesn't have much sex appeal.I'm long on DAP. It seems to be a solid company with very loyal employees. It'll never be a rocket stock. But, that's why I bought.
It'll never be a rocket stock. But, that's why I bought.True enough, but I think DAP is way undervalued by the market right now. Hopefully the earnings report will be bright and we will see some more increases. My cost basis is around 6 a share right now, so I'm still sitting pretty.
I think you made a wise investment. I'm in at about the same price, and plan on holding this one for a long time.
Easy for you to say if you are in at 6. For those in at say 25, things don't look quite so good. Stable management? Good old boy at best. If DAP doesn't get fresh thinking on the Board and management, the company will be gone in ten years max. Their approach to the auto parts business is as if we were still in the 50's and 60's with cars that could be repaired in driveways. Those days are quickly slipping away. DAP is missing the huge growth trend in young people adding accessories,etc to make their vehicles unique. The custom wheel/tire business is another growth area missed by DAP. Now with Olson on the Board they have an automatic conflict of interest in pursuing that area.DAP is destined to join buggy whips and 8-tracks as history if they do not embrace a paradigm shift ASAP.
Most vehicular maintenance could (and probably should) still be performed at home. Even with today's highly computerized engines, it doesn't take a PhD in astrophysics to change the oil or belts. As far as the "growth" area of vehicular customization goes, that has been around since the seventies at least. Most people that customize their cars in that way are not going to go to Discount Auto or Autozone or Pep Boys anyway. That is really a niche market that is catered to by specialty stores (I sincerely hope that I never go into a Discount Auto and see a 'mini-truck' kit).If DAP were to get bought out (I doubt they will simply fold up shop any time soon), the stock would demand a much higher premium than what it is currently trading at. Ever seen how much real estate this company owns?Yes, profits have not been increasing lately, but DAP has yet to lose money. As far as them having to embrace a paradigm shift (or any other trendy corporate buzz word), I think they are already in the process of changing their business for the better.
Same store sales will begin to decline. Competition (fair or unfair)from Walmart will be relentless. Creative lease/finance arrangements will take away value of real estate from share holders. Wholesaleing to repair shops is currently the only saving grace and admittedly does offer management an opportunity. I'm just not convinced they're up to it. Middle management may be great, but top management (let's see, have they been without a president for a few months and no one seems to care???) is asleep at the wheel. Partnerships with companies selling on the web with little physical presence could produce win/win results. (Whoops, sorry for using another buzz word.) We're simply not going to return to the days of changing oil and fan belts in the driveway. Someone with a degree in astrophysics probably couldn't figure it out anyway!!If you are in at $6, you have proven to be a smart short term investor, congratulations! I remain convinced the company must change dramatically to survive another 10 years.
I remain convinced the company must change dramatically to survive another 10 years.So why are you presumably still holding a long position on DAP?
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