Custom Search

Search Mad Money Fund Blog

Are You Buying Jim Cramer's Get Rich Carefully Book ?

Share Stock Picks

Friday, December 19, 2008

Happy Holiday"s Here is a Giftt , My Top ( Holiday )Stock Pick 2008/2009

(MDS) 8.05 a share 12/19/08 - Target Price 19.25 By 2009

Even through recession one thing people will always scrape to find money to pay for is car repair.
Midas, Inc. is a provider of automotive repair and maintenance services with over 2,550 shops globally. Midas retail shops, which are operated by the Company, its franchisees and licensees, offer an array of automotive repair and maintenance services. As of December 29, 2007, there were 1,711 North American Midas shops located in all 50 United States and nine Canadian provinces. Midas operates in a single business segment with retail, supply chain and real estate operations in support of automotive service shops. Retail operations consist of franchised and Company-operated shops in North America and licensed shops in 15 other countries. Supply chain activities include providing value-added merchandising services to franchisees, in which the Company establishes relationships with vendors who distribute products and equipment directly to Midas shops. Real estate activities include the development, ownership and leasing of Midas shops in North America.Midas is not a widely understood company by the average investor. I'm a franchisee, and I have more insight than most. Midas Auto Service Experts is what we knew as Midas Muffler from 1956 to 1997. When it went public on the NY, it flew , then faultered. The CEO was a disaster: But when Alan Feldman ( Ex McDonald's President) took over in 02 lots of things changed. The company unloaded all of it's high capitilized baggage such as manufacturing, and is now postured to focus on the consumer again. the ratio of service bays to vehicles is down up to 242 vehicles for every service bay in America from 190 vehicles per bay in 1997 . Midas has two stronf alliance partners in AutoZone , and Firestone Brigestone . Midas has NO alliance with Cooper tires as I have read here in the past. 13% of stock is held by insiders, and the PE ratio is now 37 . In 03 it had no earnings. Keeley Sm. Cap Value fund owns 5.7 % as of Dec 06. Since 2005 Midas has gone from a <600m> Cash Flow to a + 100M . Net income went from $600.000.00 to $2.4M in 24 months- That's not impressive until you learn that it was flirting with Chapter 11 in early 02 , when the board made significant changes. 52 week range is 7-20. I predict this company is ready for some growth , while nobody is buying new cars anytime soon , we need to keep repairing our older cars and Midas has the Midas touch to do so in the up comong year in 2009 !
Post a Comment