Pep Boys (PBY) Takes Itself Off the Market

In a recent report Pep Boys (PBY) has declared that it is taking itself off of the market. From the article:

The Philadelphia-based automotive parts and service chain also disclosed that in its search for a buyer or pursuit of strategic alternatives, it didn't find anyone interested in acquiring the entire business. Late Tuesday, Pep Boys said it was taking itself off the market and will focus on improving the business.

I mention this mainly as a word of warning about the potential sale of Cendant. To summarize that article, Cendant announced that it will consider selling itself (it is now a car rental company) to private investors. Despite the boom in private equity investment, buyers and sellers do not always agree on a suitable price and poorly performing businesses can be as unattractive to private investors as the general equity markets.

For value/turn-around investors, Pep Boys may be worth a look as it is selling right around tangible book value, near a 52-week low and is still eaking out a small profit.