The Company to Watch In This Major Shift

[Intelligent Income Daily]( Welcome to Intelligent Income Daily, the free daily newsletter from wealth and income expert Brad Thomas. Brad’s experience spans three decades of real estate and stock market booms and busts. Today, he and his team focus exclusively on the safest and most predictable ways to earn sustainable and growing income in any market condition. You can find all past issues [here](. And if you have any questions, please contact Brad and his team [here](mailto:memberservices@widemoatresearch.com). The Company to Watch In This Major Shift By Brad Thomas, Editor, Intelligent Income Daily Little did I know one “cold call” with Gus would end up being one of the most important phone calls of my entire career. Gus was the real estate manager of Advance Auto Parts (AAP) and at the time this sleepy little auto parts chain had under 100 locations. I was fresh out of college, and I was a hungry real estate developer hustling to find a good tenant to build for. I had heard about a Virginia-based auto parts chain that was looking to open new stores in my home state of South Carolina. So, I called up the company’s real estate manager (Gus) to pitch him a new site. Over time, I was able to convince Gus and his counterparts at Advance Auto to allow me to build a store in Laurens, SC which led to another 49 stores being built over the next decade. My projects were spread across five states (VA, NC, SC, GA, and AL) and the total value creation was over $60 million. It was a lot of work. I had to secure the site for the store, and hire engineers, architects, and contractors to make sure the buildings were completed on time and on budget. I also had to convince bankers and investors that Advance Auto was a worthy tenant, and that they would pay the rent. For a young developer in his 20s, Advance Auto was a terrific customer, and I was able to capitalize on their growth. Fast forward now three decades and the company has 4,998 stores located across the U.S., Canada, the U.S. Virgin Islands, Puerto Rico and Mexico, operating under several brands including Advance Auto Parts, Carquest, and Worldpac. Today, I am going to share with you one company to put on your watchlist and give you a chance to capitalize on another opportunity that could set you up for success, just as this one simple phone call did for me. Recommended Link [“That’s the craziest chart I’ve ever seen!”]( [image]( Bitcoin transactions are reaching all-time highs. And now there’s a way to profit without buying Bitcoin or any other crypto In fact, you could collect $4,898… $11,145… even $17,350 thanks to this huge spike in transactions. This Sunday, June 25th, at 1:00 p.m. ET, hedge fund market wizard Larry Benedict is revealing the full details. Including how you can get started with his three-step system first thing Monday morning. No crypto account is required. [Instantly RSVP Here.]( (By clicking the button, your email address will automatically be added to Larry’s RSVP list.) -- Misfortune Leads to a Major Shift When I was a developer, I made a decent fortune building stores for Advanced Auto – I became a multimillionaire very quickly. Since then I’ve traded in my hard hat for a laptop. Now I enjoy helping my readers make money by picking high-quality income-oriented stocks that have the same growth potential as Advanced Auto in the early 1990s. And right now, there is a major shift taking place. A few weeks ago, Advance Auto slashed its dividend by 83%, prompting several sell side analysts to downgrade the stock. Its shares plunged 35% after the cut. On the latest earnings call the CEO, Tom Greco announced that their first quarter operating margin rate of 2.6% was well below expectations due to investments that were higher than planned as well as an unfavorable product mix. The company reduced full-year guidance in net sales, operating income margin (from 8% to 5.15%), and earnings per share (EPS) (from $10.70 to $6.25 per share). Although this is a disappointing earnings release for a company that made me a small fortune, there is an investment opportunity being created that you should keep on your watchlist. Add This Company to Your Watchlist Now I’m not recommending Advance Auto today after the company slashed its dividend by a whopping 83%. But there is growing talk that suggests Advance Auto could become an M&A (mergers and acquisitions) target to suitors such as AutoZone (AZO) and O’Reilly Automotive (ORLY). All three companies operate a combined 17,800+ stores and I believe O’Reilly is best positioned to pounce on the now-wounded Advance Auto. AutoZone recently delivered a revenue miss for the quarter. And even though management updated its buyback program (repurchasing 356,000 shares for $908.2 million in the quarter), O’Reilly is most likely to acquire Advanced Auto. And in comparison to AutoZone, O’Reilly had a solid quarter highlighted by a robust 10.8% increase in comparable store sales. The company also recently celebrated its 30th year as a public company. O’Reilly is now trading at $932.55 per share, which is a bit pricey given the prices to earnings (P/E) multiple of 26.4x (a normal multiple is around 24x). But, its forward-looking double-digit growth prospects (of around 11%) for 2024 and 2025 are very promising – that does not even include the possible M&A deal with Advance Auto. So put it on your watchlist as the recession draws near and stock prices go down. O’Reilly is an excellent company to have in your portfolio. I recommended buying O’Reilly back in 2010. And since that time shares have returned over 1,518% (25% annually). You could see even greater gains in the next few years if you buy O’Reilly at a discounted price, and it’s able to pounce on Advanced Auto. One Move Can Change Your Path to Wealth Instantly Thanks to one conversation with Advanced Auto, I created $60 million in value over the next decade of my life. Right now, there is a company that is in its early stages of growth just like Advanced Auto was in the 1990s. And I want to give you a chance to capitalize on its growth opportunity before more people catch on. There are so many incredible companies are trading at a discount in this market. The key is knowing which of these companies are truly the high-quality long-term growth stocks that will safely grow your retirement and provide you a passive dividend income stream along the way. To find out what my favorite discounted pick is right now, [click here](. Happy SWAN (sleep well at night) investing, Brad Thomas Editor, Intelligent Income Daily IN CASE YOU MISSED IT… [Final stage before digital money]( The end is near… Our financial system is about to be transformed in a way that would’ve been unthinkable just a few years ago. And almost nobody is prepared for the chaos that follows. According to Bank of America, this overhaul is imminent – And Dr. Nomi Prins says the final stage begins in July, with the rollout of the FedNow system. To show you everything you need to know about the FedNow system – and to help you prepare – Dr. Prins has recorded a free presentation with all the details. It’s controversial, but Nomi’s interview is a must-watch for anyone with more than $2,500 in an American bank or retirement fund. [Click here to find out what you need to do to prepare for this historic transformation.]( [image]( [Wide Moat Research]( Wide Moat Research 55 NE 5th Avenue, Delray Beach, FL 33483 [www.widemoatresearch.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Wide Moat Research welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-415-6046, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@widemoatresearch.com). © 2023 Wide Moat Research. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Wide Moat Research. [Privacy Policy]( | [Terms of Use](