Pantry operates Gas Stations and convenience stores in the Southeast. The are the third largest independently owned in this arena. The mostly operate under the Kangaroo Express retail name. They only have 22.5 M shares of stock on the float of which 95% is institutionally owned and it trades only 378,000+ shares on average per day.
That said the missed their 4th Qtr. numbers with a (.27) loss vs. an consensus estimate of (.22). They did beat on the revenue side however they are being squeezed on the margins in gas and groceries. The company does do over $6 Billion in business so it's not small by any means just not a big growth industry and tight margins.
Techincally it's been trending down for some time now as we can see.
http://stockcharts.com/h-sc/ui?s=ptry
This stock tends to stay below the 50 day MA as indicated and has steadily moved down. Being not one to try to catch a falling knife I would sit to the sidelines on this until it starts to shows some signs of life. I see know compelling reason to own it at this point however it does possess a fairly strong balance sheet and the company is trying to grow through acquisitions. I would watch to see if it can hold $12.50 before make a long buy.
Marc Roth
February 10, 2010
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2 comments:
Thanks Marc. Your comments back up my decision on this stock. I liquidated the position on Friday afternoon with a small profit. It's nice to read that your analysis so closely mirrors mine. I'll be watching this one for signs of a move.
I value your expertise, it is a great help.
Hi Pogue. Glad it could help in some way. If you like the site and the information it's providing please let your friends know about it.
Regards,
Marc
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