Advance Auto Parts (AAP) posted a profit of 69 cents per share, before special items, in the third quarter of its fiscal ended Oct 10, 2009. This represents a 19% increase from 59 cents reported in the year-ago quarter. With this, the company also exceeded the Zacks Consensus Estimate of 66 cents per share. Total sales in the quarter rose 6% to $1.26 billion. This was attributed to a net addition of 66 new stores during the past 12 months and a comparable-store sales gain of 4.7% compared to a decrease of 0.1% during the third quarter last year. The comparable-store sales gain was comprised of an 11.8% increase in Commercial, or do-it-for-me (DIFM), and a 1.7% increase in do-it-yourself (DIY) sales. Gross profit rate was 49.2% of sales compared to 47.3% in the prior year. This 190 basis-point improvement reflects continued investments in pricing and ...

We are presenting a list of companies which we believe are currently mispriced, based on our estimate of fair value, by the market. We develop our fair value ranges by projected free cash flow out one year and estimating an appropriate FCF multiple based on our assessment of risk and the strength of the balance sheet.

Cisco Systems [CSCO: 19.57, +0.84 (+4.48%)] Recent Price $17.04 Value Range 21.86 – $38.41 Cisco Systems, Inc. designs, manufactures and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry, and provides services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate and collaborate. Cisco Systems, Inc.’s products, which include primarily routers, switches, and products that the

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