Gavekal Capital: Advance Auto Parts up 16.5% today but hold on before diving in

Wednesday, October 16, 2013

Advance Auto Parts up 16.5% today but hold on before diving in

Advance Auto Parts (ticker: AAP) gapped up today on the open and finished the day 16.5% higher on the news that it was buying General Parts International, Inc for $2 billion in cash. This phenomenal one day advance, however, doesn't look like it changes the longer-term trend for AAP. The stock should bounce to the top of its nearly 2-year trading range but topping formation still looks to be the most likely configuration for this stock.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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