AutoZone (NYSE: AZO) is the leading U.S. retailer and distributor of automotive replacement parts and accessories. Each store carries an extensive product line for cars, sport utility vehicles, vans and light trucks. Most outlets provide commercial credit and prompt delivery of products to repair shops. AutoZone operates more than four thousand stores in the U.S., Puerto Rico and Mexico.

The company pleased investors earlier in the month, when it reported fiscal Q1 EPS of $2.02 and revenues of $1.46 billion. Analysts had been expecting $1.91 and $1.44 billion. The news popped the shares out of a November "cup" into the December "handle" of a Cup & Handle formation. The price is now showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle".

Brokers recommend the shares with four "strong buys", twelve "holds" and three "sells". Analysts see a 12% average annual growth rate, through the next five years. The AZO P/E ratio (13.86), PEG ratio (1.12), Price to Sales ratio (1.25), Price to Cash Flow ratio (10.11), Price to Free Cash Flow ratio (11.30), EPS Growth rate (16.76%), Return on Assets (12.74%), Return on Investment (23.61%) and Return on Equity (170.49%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $103.40 and $140.29. A stop-loss of $106.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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The country's largest automotive parts and accessories company, AutoZone Inc. (NYSE: AZO) posted record sales and earnings for 1Q FY 2008. Net sales increased 4.5% to $1.5 billion. Same store sales increased 1.3%. Net income increased 7% to $132.5 million, and gross profit margin improved slightly.

Operating expenses increased slightly, but this additional cost was offset by a much larger reduction in net inventory per store. AutoZone uses a supplier-owned pay-on-scan inventory control system in order to maximize inventory efficiency and reduce cost of goods sold.

During 1Q the company repurchased $350 million worth of stock at an average price of $121 per share, quite a bargain given that the stock recently traded at just under $130 before retreating to $124.

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AutoZone (NYSE: AZO) is scheduled to report earnings before the market opens on Tuesday, December 4, 2007 with analysts estimating it will report $1.91 per share. Last time AZO analysts estimated that AutoZone would report $3.25 and just missed analyst's expectations with earnings of $3.23.

Beating estimates is not a given with AutoZone as it has missed five of the last 12 times is reported. But just because it misses does not mean those stock will go down; most of those misses were small and four of the last five times the stock missed it actually went up after earnings. In fact, the stock has rose 9 of the last 12 times it reported earnings.

While the stock has moved up as much as 8.3% (Q1 '06) on earnings or fallen as much as 4.5% (Q2 '07) the average move is actually closer to 3.8% up or down.

As you can see from the chart, AutoZone's earnings are also very cyclical,so they are expected to be lower than the last quarter. Looking at the three-year trend, AutoZone has been slowly growing its earnings which is a good thing for the long term prospects of the stock.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

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MOST NOTEWORTHY:

• Lehman upgraded the small-cap bank sector to Neutral from Negative as they expect the group to benefit from the decline in short-term interest rates and the steeping yield curve. The firm upgraded Associated Banc-Corp (NASDAQ: ASBC), Pacific Capital Bancorp (NASDAQ: PCBC) and Westpac Banking Corp (NYSE: WBK) to Equal Weight from Underweight.
  
• Friedman Billings added Waste Connections (NYSE: WCN) to its Top Picks list. The firm believes the company can outperform the group and overall market in an economic downturn.
  
• Warnaco Group (NASDAQ: WRNC) was upgraded to Overweight from Neutral at JP Morgan on valuation and growth potential.
  
• JMP Securities' checks indicate that Intersections (NASDAQ: INTX) is on track to meet EPS expectations for the quarter and is well positioned to beat their 2008 EPS estimate of 80c. The firm raised shares to Strong Buy from Outperform.

• Best Buy Incorporated (NYSE: BBY) and AutoZone (NYSE: AZO) were upgraded to Strong Buy from Outperform at Raymond James.
  
• The firm also upgraded shares of CBRL Group (NASDAQ: CBRL) to Market Perform from Outperform.
  
• JP Morgan upgraded Ruby Tuesday (NYSE: RT) and Plexus Corp (NASDAQ: PLXS) to Overweight from Neutral.
  
• Bear Stearns raised MFA Mortgage Investments (NYSE: MFA) to Outperform from Peer Perform.
  
• Goldman added Automatic Data Processing (NYSE: ADP) to its Conviction Buy List.

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AutoZone, Inc. (NYSE: AZO) implied volatility elevated into mid September earnings per share (EPS) and outlook: AutoZone is expected to report earnings per share on September 18. AZO management will be speaking at Goldman Sachs Group, Inc. (NYSE: GS) 14th Annual Retailing Conference on September 6. AZO September option implied volatility of 36 is above its 26-week average of 25, according to Track Data, suggesting larger price risks.

Cisco Systems, Inc. (NYSE: CSCO) implied volatility flat into September 5 analyst meeting: Cisco is recently up 40 cents to $31.83. CSCO will be holding an analyst meeting in San Jose, CA, on September 5. BAMO says, "we believe the meeting will be used to showcase CSCO's growing technology platform and emphasize the company's mantra of the network as the IT platform." CSCO September option implied volatility of 26 is near its 26-week average of 28, according to Track Data, suggesting non-directional risk.

Daily options update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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MOST NOTEWORTHY:

• Matrix upgraded Marvel Entertainment (NYSE: MVL) to Buy from Hold as they don't think the company's improving performance is reflected in its falling stock price. They think Marvel represents a good entry point at current levels.

• Kevin Dann upgraded shares of AutoZone (NYSE: AZO) to Buy from Hold on valuation and highlighted their belief that AutoZone may not be seeing as much sales weakness as investors expect. They recommend taking advantage of the recent share weakness and raised their target to $135 from $125.

• Gabelli recommends Home Depot (NYSE: HD) as a long-term buy with a $43 target, upgraded shares from Hold, with the Supply division uncertainty now eliminated. They view the sale positively, even at the lower price.

• JP Morgan upgraded Molson Coors (NYSE: TAP) to Overweight from Neutral, and believes Molson will monetize its solid balance sheet and free-cash flow yield to benefit the shareholders. They also consider valuation to be attractive.

• Semtech (NASDAQ: SMTC) was upgraded to Outperform from Market Perform at William Blair following the strong Q2 report and outlook...

• Big Lots (NYSE: BIG) was upgraded to Market Outperform from Market Perform at Avondale.

• Longbow raised TTM Technologies (NASDAQ: TTMI) to Buy from Neutral.

• Breen Murray raised to Intevac (NASDAQ: IVAC) to Hold from Sell.

• Stifel upgraded Arch Capital (NASDAQ: ACGL) to Buy from Hold.

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Richard Rhodes, professional trader, money manager and editor of The Rhodes Report was one advisor who accurately forecast the recent decline and moved into short positions going into this past week.

And while he sees the potential for a near-term bounce, this week's action leads the advisor to say, "A major trading high has formed, which will lead to a -10% to -20% correction...perhaps deeper."

He explains, "If there was ever a 'bell' to signal the end of an intermediate or long-term rally; we think the decline from the S&P 500 high of 1565 to yesterday's low at 1465 suffices as such."

The constriction of credit and liquidity, he notes, has led to very poor advance/decline figures. As such, he suggests being a seller during any rallies that result fro the "month-end bullish pattern and short-term oversold condition."

Indeed, even in his Long Only Portfolio - a portfolio that as its name implies only holds long position - he now says, "We are going to a very rare, but very prudent 'no position' stance." As for his Long/Short Portfolio, he says, "We are now aggressively short."

Rhodes explains, the world is "shunning risk" - trying to "find the door while it is open." Looking ahead, he cautions, "We fear - greatly we might add - that given the increasing stock volatility - that currency volatility is likely to grow as well. This would further fuel the volatility in stocks, and where it all ends is anyone's guess at this point."

Rhodes continues, "What isn't well understood is how much more of the carry-trade that can and will be taken off; we fear it is a good deal more than anyone anticipates, and we shall likely see some type of enormous blow ups in the hedge fund community. It is only a matter of time."

He concludes, "Therefore, we will mince no words - we believe the highs are in. We think rallies are to be aggressively sold upwards 1500 to 1510, and we think this is part and parcel of the first leg lower of a major decline of between 10% and 20%."

For now, in his trading portfolio he Rhodes is holding several short positions including Dillard's (NYSE: DDS), AutoZone (NYSE: AZO), and Freeport-McMoran (NYSE: FCX).

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

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MOST NOTEWORTHY:

• JMP Securities downgraded shares of Dendreon Corp (NASDAQ: DNDN) to Market Underperform from Market Perform based on the company's uncertain product pipeline and the recent SEC filing that revealed that certain officers and directors are facing potential shareholder lawsuits regarding trading activities.
  

• Friedman Billings cut Cubic Corp (AMEX: CUB) to Underperform from Market Perform on valuation.

• RBC Capital downgraded Endo Pharmaceuticals (OTCBB: ENDP) to Sector Perform from Outperform following the company's withdrawal of guidance pertaining to its NDA for the Ketoprofen patch.

• Northrop Grumman (NYSE: NOC) was cut to Neutral from Overweight at JP Morgan on valuation. UBS cut Royal Dutch Shell to Neutral from Buy on valuation...

• Robinson Humphries downgraded Ruby Tuesday (NYSE: RT) to Neutral from Buy.

• Montgomery downgraded shares of Taleo Corp (NASDAQ: TLEO) to Hold from Buy.

• Credit Suisse downgraded AutoZone (NYSE: AZO) to Neutral from Outperform.

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MOST NOTEWORTHY:

• Wachovia initiated coverage on AutoZone (NYSE: AZO), Advance Auto Parts (NYSE: AAP) and O'Reilly Automotive (NASDAQ: ORLY) with Outperform ratings. The firm sees upside for AutoZone from share buybacks, Advance Auto Parts from improved cost control and margins, and O'Reilly Automotive from share gains and fundamental performance.

• First Albany started Electronic Arts (NASDAQ: ERTS) with a Buy rating and sees significant upside in the first-half of 2008.

• BMO Capital started Cinemark (NYSE: CNK) with an Outperform rating, citing Cinemark's internal growth opportunities as well as its international opportunities in Latin America.

• American Tech started Monster Worldwide (NASDAQ: MNST) with a Neutral rating, saying fundamentals and the macro backdrop remain uncertain...

• Bernstein initiated coverage on Google (NASDAQ: GOOG) and eBay (NASDAQ: EBAY) with Outperform ratings and a $635 target and $39 target, respectively, and Amazon.com (NASDAQ: AMZN), InterActive Corp (NASDAQ: IACI) and Yahoo! (NASDAQ: YHOO) with Market Perform ratings and a $65 target, $38 target and $29 target, respectively.

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MOST NOTEWORTHY:

• Citigroup cut AutoZone (NYSE: AZO) to Hold from Buy with a $145 target based on valuation.Gabelli also downgraded shares of AutoZone to Hold from Buy.

• Lehman downgraded shares of Blue Nile (NASDAQ: NILE) to Equal Weight from Overweight, citing valuation and competitive concerns from Amazon.com (AMZN), which may look to strengthen their position in the diamond engagement market.

• MetLife (NYSE: MET) was cut to Neutral from Buy on valuation.

• Analog Devices Inc (NYSE: ADI) was cut by Credit Suisse and JP Morgan to Neutral from Outperform, by Sanders Morris to Neutral from Buy and by Merrill Lynch to Sell from Neutral after the company reported weak Q2 results.

• Matrix downgraded Advanced Micro Devices (NYSE: AMD) to Strong Sell from Hold based on the loss of market share to Intel Corp's (INTC) new products...

• Lehman cut Xcel Energy Inc (NYSE: XEL) and Pinnacle West Capital Corp (NYSE: PNW) to Underweight from Equal-Weight.

• Bernstein downgraded Chevron Corp (NYSE: CVX) to Market Perform from Outperform.

• Credit Suisse downgraded ValueClick, Inc (NASDAQ: VCLK) to Neutral from Outperform.

• Bear Stearns cut CNOOC Ltd (NYSE: CEO) to Peer Perform from Outperform.

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MOST NOTEWORTHY:

• Deutsche Bank downgraded Groupe Danone (NYSE: DA), Unilever (NYSE: UL) and Nestle (OTC: NSRGY) to Hold from Buy as the firm believes the three food producers will suffer from rising prices for agricultural commodities.

• SMH Capital downgraded shares of TiVo (NASDAQ: TIVO) to Sell from Hold on valuation as the firm believes the market has already priced in considerable penetration of the new TIVO/Comcast bundled DVR into Comcast's (CMCSK) core digital sub base.

• Matrix downgraded Circuit City Stores (NYSE: CC) to Strong Sell from Hold as the firm believes increasing competition is leading to lower selling prices and decreasing profits.

• BMO Capital cut AutoZone (NYSE: AZO) to Underperform from Market Perform on expectations that higher gas prices will be a drag on discretionary product sales...

• Goldman added Applied Materials, Inc (NASDAQ: AMAT) to its Americas Conviction Sell List.

• Oppenheimer downgraded Federated Department Stores (NYSE: FD) to Neutral from Buy.

• STEC, Inc (NASDAQ: STEC) was cut to Neutral from Buy at Merrill Lynch and to Sector Perform from Outperform at CIBC after weak Q1 results.

• Boyd Gaming Corp (NYSE: BYD) was cut to Market Perform from Outperform at BMO Capital.

• Baird downgraded Amgen, Inc (NASDAQ: AMGN) to Neutral from Outperform.

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Just how likely is a takeover of Office Max (NYSE: OMX)? The stock jumped up yesterday 8% as analysts speculated a takeover was likely. As a former employee of Office Depot (NYSE: ODP) I have followed the retail office supply sector closely and I still own shares in the company. To set the stage lets look at the last ten years in the industry.

There are three big players in the profitable retail office supplies industry are Staples(NASDAQ: SPLS), Office Depot (NYSE: ODP) and Office Max (NYSE: OMX).

Staples, the market leader in the industry has 1,884 stores and a market capitalization of 18 billion. Staples has been leaner and efficient in getting products to consumers and took the lead from Office Depot a couple of years ago.

Office Depot has 1,158 stores and has not been as nimble. In March 2005, Steve Odland left AutoZone (NYSE: AZO)to take the reins at Office Depot and help it increase efficiency in distribution something that AutoZone had down to an art. With the stock price rising from 20 to 35, it would appear he has been successful.

Office Max, with 914 stores and 3.3 billion market capitalization, has been the also-ran in the industry. It has suffered from poor management and lost money eventually selling itself to Boise Cascade (which then renamed itself OfficeMax) in a complicated merger. Since the takeover Boise Cascade can also claim success in for turning a $1.1 billion investment into a profitable $3.3 billion dollar company.

Less competition would be good for the players, but bad for consumers as it would allow prices to rise. Staples tried to buy Office Depot in 1996, but when the merger did not get government approval it left Office Depot competitively off balance. The Office Max management has experience in complicated buyout deals so I would not be surprised to see a deal come from them. There are definite distribution synergies that could come from a merger in the industry, but the big question is whether it would get government approval. A merger could allow Office Depot to reclaim the number 1 spot in office supplies and mergers are definitely in style on Wall Street right now. It will be interesting to see if the merger mania brings the office supply super store niche down to two main retail companies.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock.

Disclosure note: Mr. Kersten owns and or controls a diversified portfolios of long and short positions that may include holdings in companies he writes about.

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You know the charge: Wal-Mart kills small businesses. If one of the retailing juggernaut's Supercenters moves into your town, the logic goes, all the mom-and-pop shops that have faithfully served residents for decades will soon have no choice but to shutter their businesses.

But it doesn't always work that way. In some cases it actually makes sense for businesses to locate next to a Wal-Mart. You may be able to entice some of those throngs of bargain-hunters to stop by your establishment and spend a few bucks. But before you consider this strategy, be sure you can compete head-on with the retailing Goliath on price or selection.

I recently wrote about how Goodwill Industries -- one of the top thrift stores in the country -- is locating more of its stores adjacent to Wal-Mart Stores, Inc. (NYSE: WMT). In fact, that has become standard practice in the state of Ohio apparently. Why? Goodwill explained that both it and Wal-Mart serve the same types of customers ( or "demographic" as they call it in retail-speak). Sounds like a smart strategy to me.

But what about other retailers? From what I have seen, Wal-Mart Supercenters are retail anchors almost everywhere they are built. You see Blockbuster Inc. (NYSE: BBI), RadioShack Corp. (NYSE: RSH), Dollar Tree Stores (NASDAQ: DLTR) and chain restaurants like McDonald's Corp (NYSE: MCD) and Wendy's International (NYSE: WEN) pop up right next to Wal-Mart Supercenters. Why? Seems simple -- to get the traffic Wal-Mart has in and out of its parking lot.

Same goes for Blockbuster Video (even though Wal-Mart did test several DVD-renting offerings), and even Dollar Tree, which targets the same core demographic as Wal-Mart. Those are customers who shop based on one criteria above all else -- price. Even Wal-Mart can't compete with Dollar Tree's "$1 for everything" strategy despite the fact that much of the product selection is very similar if not identical in some categories. I think Wal-Mart's main suppliers would go out of business if the world's largest retailer started trying to compete with dollar stores, even in limited categories.

So, the moral of the story, you may ask? While neighbors of Wal-Mart are there to feed off of Wal-Mart traffic for the most part, they also can serve niches for customers that Wal-Mart simply can't provide. And some of us thought Wal-Mart sold just about everything!

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• Blockbuster (BBI) was downgraded to Hold from Buy at Citigroup on valuation, as they believe Blockbuster's catalyst are priced into the stock after the recent rally;
• Borders Groups (BGP) was downgraded to Neutral from Outperform with a $24 target at Credit Suisse, citing valuation and the timing of its turnaround.

• Kevin Dann believes shares of AutoZone (AZO) have gotten ahead of themselves while earnings have slowed and downgraded the specialty auto retailer to Sell from Hold with a $105 target.
• Additionally, American Eagle (AEOS) was downgraded to Hold from Buy at Matrix USA, citing valuation.
• Novellus (NVLS) was downgraded to Sell from Neutral at Goldman Sachs; the firm believes NAND weakness would drive worse-than-expected fundamentals and finds it "extremely unlikely" they would be acquired at these levels.
• Affiliated Computer Services (ACS) and Electronic Data Systems (EDS) were both downgraded to Reduce from Neutral at UBS.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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Ever wanted to manage your portfolio like your very own hedge fund? If so, then there's no reason to re-invent the wheel. There are thousands of pro investors who live by a simple imperative: earn or die. One strategy for building your own wealth, therefore, is to select a few with proven track records, concentrated portfolios, and low turnover, and pore over their quarterly regulatory statements.

In a recent Barron's article, Andrew Barry found five such mavericks and the names that were among their top holdings as of September 30, when the last 13-F reports were filed. Sure, your timing might be off because the information is 45 days old, but these investments can at least shed light on what the best brains are thinking and possibly indicate similar plays in hot sectors.

Appaloosa Management (David Tepper)

According to Barry's piece, Tepper's $4 billion fund is up by around 25% this year, based on shrewd investments in tech shares such as Oracle (NASDAQ: ORCL), Cisco Systems (NASDAQ: CSCO) - which are each up by more than half - and big daddy Microsoft (NASDAQ: MSFT). As of his last filing, Tepper also held positions in Micron Technology (NYSE: MU), Applied Materials (NASDAQ: AMAT), and Texas Instruments (NYSE: TI). His largest holding was in the tech-heavy ETF Nasdaq 100 Trust Shares; he's also scored some turnaround wealth with airlines AMR Corp. (NYSE: AMR), UAL Corp. and Continental Airlines (NYSE: CAL).

Greenlight Capital (David Einhorn)

The highlight of Einhorn's Greenlight fund, which was up 23% for the year as of last month, was Freescale Semiconductor, which rose 58% the year before a $17 billion LBO took it private. Barry's piece also indicates that Einhorn's 13-F showed holdings in Ameriprise Financial (NYSE: AMP) and Hospira (NYSE: HSP), spin-offs from American Express Co. (NYSE: AXP) and Abbott Laboratories (NYSE: ABT), respectively. Einhorn has also ridden Microsoft up from $23 to $29.

Lone Pine Capital (Steve Mandel)

Lone Pine, buoyed by nice results from Google (NASDAQ: GOOG) and Apple Computer (NASDAQ: AAPL), has returned around 25% annually over the past eight years and risen in value to $8 billion. Mandel has since sold off some of Google on valuation, but in the third quarter he bought more Comcast (NASDAQ: CMCSA) and Qualcomm (NASDAQ: QCOM) and opened a holding in Schlumberger (NYSE: SLB). Mandel also recently sold out of Research in Motion (NASDAQ: RIMM) and America Movil (NASDAQ: AMOV).

ESL Investment Management (Ed Lampert)

Lampert, one of the key figures in the merger between Kmart and Sears, owns $10.3 billion alone (or over 40%) of Sears Holdings, which has soared tenfold over the last three years. According to Barry, Lampert likes retailers to grow profits at existing stores rather than to expand mindshare with too many locations; this is why ESL holds Autozone (NYSE: AZO) and Autonation (NYSE: AN), which are the remaining two equities he holds - testimony to Lampert's plan of intense focus.

Icahn Partners (Carl Icahn)

And lastly, to Big Carl. Icahn's lives up to his iconic last name not just from his corporate activism, but also from the success of his fund (which is up 30% this year). Icahn's reaped some nice profits from Kerr-McGee (NYSE: MCG), which was bought by Anadarko Petroleum (NYSE: APC) this year, Blockbuster (NYSE: BBI) and ImClone Systems (NASDAQ: IMCL). He's also famously involved with Time Warner (NYSE: TWX), whose stock, his biggest stake, is up 16% this year.

Of course, the strategy of following around the big dogs has pitfalls. For one, it's not like this is anything new. Everyone's been looking over everyone else's shoulders since the Buttonwood Agreement, and some investors might be scared off by herd mentality. If your stock becomes a "hedge-fund hotel," a selling frenzy could set off huge ripple effects. Like Pfizer (NYSE: PFE). You're not going to rake in the billions, and you won't have the access that the world's Icahns have, but if you're looking for big-cap ideas that have paid off well, it current hurt to draw off the wake of the biggest boats.

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Born in 1962, Edward S. Lampert is one year younger than myself and he's had more than enough success for the both of us. I admit I'm a bit envious but I'm sure he runs up against a lot of that. When we think of his name, the first natural link we make is directly to his involvement in the holding of the reins on Sears and Kmart via Sears Holdings Corp.(NASDAQ (GS):SHLD). You can get a nice composite view of SHC using this link. However, that's not the focus of this blog piece. I discovered in my research that Eddie Lampert is a director of both AutoNation (NYSE: AN) and AutoZone (NYSE: AZO). That is what grabbed my attention.

Described as a hard-edged conservative investor with aggressive intent, Eddie Lampert has stated that he took much inspiration from the Warren Buffet letters he read during his internship with Goldman Sachs. The aggressive part of Mr. Lampert's strategy is in the groundwork he lays for making his investments. Getting to know the business and its people is of paramount importance to him. The conservative angle of his investments is based upon the principle of never buying for more than you know you will get a very respectable return from. An interesting quote from Mr. Lampert that stuck in my head is, "... past performance as a measure of quality is wildly overrated. It would make a lot more sense to place more emphasis on and think about the people that put the track record together ..."

What is the reason for Eddie Lampert's involvement with AutoNation and AutoZone? He has openly admitted that retail operations diverge somewhat from his overall concept of ideal investments. He has stated that these are opportunistic involvements. I needed to find the deeper reasons why Mr. Lampert has consented to put his "shoulder to the wheel" in spending his time and efforts with the world's largest automotive dealership and an auto parts mega-retailer. The dynamics of what I uncovered about Mr. Lampert's auto parts undertakings are very simple. Eddie Lampert was the obvious choice to be put in charge of immediate and vast potential.

Let the reader take notice here that Mr. Lampert is not in the habit of planting some seed and then just waiting for it to grow. Edward Lampert is very much a hands-on guy. He likes to get in there and get the job done. He's not prone to simply waiting for results. His first step in getting involved in AutoZone stores was to have accomplished an intensive store to store canvass of a cross-section of AutoZone's operations. Suffice it to say, he likes to get the "feel" of where he's going to work.

The lesson I'm trying to show you in all this is the importance of involvement in your investments. Great business people don't point their finger and wait for others to accomplish all the tasks. Yes, there is a need for administrative brilliance when it comes to cultivating millions of dollars of potential but when the day ends, the most successful business personalities are most definitely the ones with some dirt under their nails.

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With Amazon.com, Inc. (NASDAQ:AMZN) now in the used and remanufactured auto parts game, should national retailers like O'Reilly Automotive, Inc. (NASDAQ:ORLY) and AutoZone, Inc. (NYSE:AZO) feel a threat? Sure -- but insofar as a long-term threat, who knows. Seems like some industries are still destined to be turned upside down by the Internet -- and by efforts that come from Amazon.com specifically.

Online e-tailer Amazon -- the world's largest online retailer -- announced a few weeks ago that it would be offering more than one million new, used and remanufactured auto parts on its website. This comes even as it basks in the glow of knowing it sells almost every possible consumer product imaginable.

Here's the kicker: In addition to general auto parts, Amazon.com will be acting as a sales conduit for more than 250 independent auto, truck and motorcycle parts retailers -- including Auto Barn, HorsePowerFreaks, Midway Auto Supply and Summit Racing Equipment. The retailer seems intent on bringing as many possible third-party sellers as possible under its giant umbrella -- once they pass the "Amazon" test I assume. Since Amazon has a very decent consumer experience reputation, the entry barriers are probably fairly stringent.

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