Wednesday, January 8, 2014

Seeking Alpha: MSC Industrial Slowly Coiling The Spring

As I have written previously, I had no particular expectations that fiscal 2014 was going to be an excellent growth year for MSC Industrial (MSM). Not only is the company dealing with the same sluggishness in the industrial sector that has been showing up in the results at Grainger (GWW) and Fastenal (FAST), but the company has committed to making a series of investments this year that are designed to drive and support growth in future years.

I continue to believe that MSC is a good stock to buy during this "reloading" phase. Management here is consistently conservative in its outlook/communications and its approach to the business - running the business for long-term success and not to please the Street's short-term growth obsessions. I also believe that the Street overestimates the potential impact of Amazon (AMZN), Fastenal, and Grainger encroaching on MSC Industrial's turf, while underestimating the company's ability to leverage the BDNA deal into significant cross-selling and entries into new markets.

Follow this link to the full article:
MSC Industrial Slowly Coiling The Spring

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