AUTOZONERS

This stock fascinates me...partly because I enjoy dueling with fast eddie and partly because this pig is geared up and buys back stock like no tomorrow

Judging by headline #'s (they reported today) they beat by 2 cents

But lets delve a little into this release

Selected Balance Sheet Information
(in thousands)
                         Feb 14,     Feb 9,   August 30,
                          2009       2008       2008
                       ---------- ---------- ----------

Cash and cash equivalents $  107,973 $   93,465 $  242,461
Merchandise inventories    2,190,198  2,068,483  2,150,109
Current assets             2,580,867  2,356,644  2,586,301
Property and equipment,
net                       2,267,404  2,204,102  2,289,656
Total assets               5,235,085  4,938,397  5,257,112
Accounts payable           1,974,747  1,842,951  2,043,271
Current liabilities        2,468,682  2,325,222  2,519,320
Debt                       2,690,755  2,095,000  2,250,000
Stockholders' equity        (187,302)   282,233    229,687
Working capital              112,185     31,422     66,981


SEE THAT NICE NEGATIVE EQUITY POSITION...NOT REALLY
SOMETHING I LOOK FOR IN A 150 STOCK BUT MAYBE
THAT IS JUST ME

Selected Cash Flow Information
(in thousands)

               12 Weeks     12 Weeks     24 Weeks      24 Weeks
                Ended        Ended         Ended        Ended
             Feb 14, 2009 Feb 9, 2008  Feb 14, 2009   Feb 9, 2008
             ------------ ------------ ------------  ------------

Depreciation    $     41,811 $     38,865 $     81,964  $     78,557
Capital
spending       $     47,047 $     50,258 $     98,146  $     95,145

Cash flow
before share
repurchases:
Net increase
(decrease) in
cash and cash
equivalents    $     22,217 $     13,652 $   (134,488) $      6,811
Subtract
increase
(decrease) in
debt                422,555      (66,070)     440,755       159,382
Subtract share
repurchases        (375,042)          --     (647,166)     (349,990)
             ------------ ------------ ------------  ------------
Cash flow
before share
repurchases
and changes in
debt           $    (25,296)$     79,722 $     71,923  $    197,419
             ============ ============ ============  ============

These guys bought back stock by borrowing money and had negative cash flow...I know this is defensive sector and all but gearing up to buy MORE stock in this environment...hummm...and I know they earned money and beat and all that but i just gotta wonder a lil

But delving deeper into their report they also had a build in inventory despite SSS up 6%...All this stuff I find interesting...yeah i took a swipe at it today just before the conference call started...We shall see how it turns out

I Listened to conference call but i was also listening to bendover and CONgress so i will have to go back and listen to it more in depth...Just wanted to point it out for now