The stock of auto parts chain Monro Muffler Brake (MNRO), first discussed here on March 27, 2009 at a split-adjusted price of $17.33 ($26.01 pre-split), pulled-back in the winter to $33 from $36, but I still like the business model.

Even so, if you haven't already, now may be a good time to consider taking some profits off the table, if you're in at/near $17 with MNRO.

However, those investors who can tolerate the risk can retain their full position to go for an even bigger gain with MNRO.

There are plays that work out, and then there are standout plays. In December 2010, Monro Muffler Brake (MNRO), announced a 3-for-2 stock split, which brought the trade's entry point down to $17.33 ($26.01 pre-split).

Meanwhile, auto repair chain Monro remains on a roll: the shares pulled back following the split, but have since recovered some of the ground, to about $33, and now may be a good time to consider taking some profits off the table.

Talk about good timing. A year ago the calculation with Monro Muffler Brake (MNRO), first discussed here on March 27, 2009, at a price of $26.01, argued that the auto repair sector would do well because many Americans can't afford a new car, basically.

And auto repair chain Monro has been on a roll since then, recently testing $50, hence now may be a good time to consider taking some profits off the table. However, those investors who can tolerate the risk can retain their full position to go for a bigger gain.

I'd also raise the sell/stop loss to $37 from $17.

In stock investing, there are those era-appropriate plays that one intuitively knows contain an opportunity, and Monro Muffler Brake (MNRO), first discussed here on March 27, 2009 at a price of $26.01, continues, is one.

It goes without saying that the auto repair sector's fundamentals and economic conditions remain favorable for MNRO.

Pinched budgets and a high U.S. unemployment rate above 9% point to new car sales that will not return to normal levels any time soon, which means many Americans will be driving their 5-year and 8-year used cars longer, and that means increased maintenance, to Monro's benefit. Ditto for the trend toward used car purchases instead of new car purchases, which many Americans can't afford right now. Therefore, look for Monro's revenue to increase 12-15% in 2010, followed by a 15-20% increase in 2011.

Monro Muffler Brake Inc. (MNRO), first recommended on March 27, 2009 at a price of $26.01, has pulled-back in recent weeks, but investors should view the retreat as a Buy opportunity, and I'm obviously Reiterating my Buy rating. Here's why:

The auto/vehicle repair sector's fundamentals and U.S. economic conditions remain favorable for MNRO. Pinched budgets mean new car sales will not return to normal levels any time soon, which means many Americans will be driving their five-year and eight-year used cars longer, triggering increased maintenance transactions, to Monro's benefit. Ditto regarding the trend toward used car purchases instead of new car purchases, which many Americans can't afford right now.

One U.S. sector should fair reasonably well in just about any economic climate: automotive undercar repair and tire service, which is why I'm Reiterating my Buy rating for Monro Muffler Brake Inc. (NASDAQ: MNRO), first recommended on March 27, 2009 at a price of $26.01.

Monro's stock has not progressed as much as expected when first recommended in March, but the sector's fundamentals and U.S. economic conditions remain favorable for MNRO. Pinched budgets means new car sales will not return to normal levels any time soon, which means many Americans will be driving their five-year and eight-year used cars longer and needing increased maintenance, to Monro's benefit.

I'm Reiterating my Buy rating for Monro Muffler Brake, Inc. (NASDAQ: MNRO), first recommended on March 27, 2009 at a price of $26.01.

Uncertainty remains the operative phrase regarding the U.S. economy and the stock market. But one sector should fair reasonably well in just about any economic climate: automotive undercar repair and tire service, that's why Monro Muffler Brake is worthy of investor consideration.

TheStreet.com's Jim Cramer is seeing signs of a coming boom, but he's still being cautious here.

If you had to define the early cycle, if you had to outline what stocks should be soaring coming out of a recession into a boom and which ones should be faltering, you would have to say the action in this market in the last month is the quintessential behavioral pattern.

What are the components of the early cycle? First, it's the homebuilders. As is typical coming out of a recession, the stocks precede the bottom of housing. That's exactly what's happening with the lowest permits and highest affordability and best mortgage rates and massive inventory. Everywhere, except on Wall Street reporting, the bottom is bursting out. When you read the lead story in the Sunday Philadelphia Inquirer, and it is all about the thousands of prospective homebuyers heading south to pick up condos and homes for half of what they were worth two years ago -- or even less -- and you know that virtually no one has broken ground in the Sunshine State in a year, you can bet that the bottom's actually behind us. This housing market has wiped out all but the most stable private builders and even the public ones are merging as we know from Pulte (NYSE: PHM) (Cramer's Take) and Centex (NYSE: CTX) (Cramer's Take). So, in the next cycle, you can see some profitability developing year over year even though the new homes don't have much margin because the foreclosed homes next door are going for a song. And don't believe this won't change the dynamic of future foreclosures. In most areas, rent is higher than the interest on mortgages, so you will find that second or third job needed to stay in your home. The incentive structure's radically different than a year ago.

It goes without saying that the U.S. stock market remains loaded with risk: due diligence and discretion remain the operative words.

Still, that's not to say that opportunities do not exist for investors who can tolerate moderate risk. One sector that should fair reasonably well in just about any economic climate: automotive undercar repair and tire service. And with that in mind, Monro Muffler Brake (NASDAQ: MNRO) is worth a review.

Father's Day is around the corner. Why not spend some time looking at the coming earnings and how Dad's Day may have an impact. It is funny to see how many of the companies reporting earnings this week actually have links to Father's Day.

While this column has been obviously bearish of late, there are a few potential winners that may appear, just in time for the big day. Time to stock up on gifts for dear-ole-dad, or get farther away from stocks? You tell me... (by the way, comments and ideas are always appreciated)

Monday, May 26

Markets will be flat. I am certain that stocks on the U.S. Market will close at the exact price they closed last Friday. But what do I know!

MOST NOTEWORTHY: McAfee (MFE), Wabtec Corp (WAB), Pacific Sunwear (PSUN), Aeropostale (ARO) and Amdocs (DOX) were today's noteworthy initiations:

• McAfee Inc (NYSE: MFE) was initiated with an Accumulate rating at ThinkEquity, as the firm is positive on the company's competitive positioning in security, refocused business and streamlined operations.

• JP Morgan initiated shares of Wabtec Corp (NYSE: WAB) with an Overweight rating, as the firm believes Wabtec's strong market presence should support 22% and 12% EPS growth in 2007 and 2008.

• Nollenberger feels that the core PacSun concept is challenged to re-establish a niche in the competitive teen marketplace, and initiated shares of Pacific Sunwear (NASDAQ: PSUN) with a Neutral rating and $22 target.

• Nollenberger also initiated shares of Aeropostale (NYSE: AEO) with a Buy rating and $49 target and recommends buying the stock into back to school.

• Cantor initiated shares of Amdocs (NYSE: DOX) with a Hold rating and $37 target on valuation...

OTHER INITIATIONS:

• Midas, Inc (NYSE: MDS) and Monro Muffler Brake, Inc (NASDAQ: MNRO) were initiated with Neutral ratings at JP Morgan.

• JP Morgan also initiated shares of Greenbrier (NYSE: GBX) with a Neutral rating.

• Sterne Agee initiated shares of Colwater Creek (NASDAQ: CWTR) with a Buy rating.
  

• Vascular Solutions (NASDAQ: VASC) was initiated with an Outperform rating and $12 target at RBC Capital.

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