One of the endless debates between investors is whether it is better
to move in and out of positions in response to short-term trends or to
identify well-run companies with long-term drivers and hold them through
thick and thin. I'm generally in the latter camp, but even I will
acknowledge that it is harder to argue that industrial distributor MSC Industrial (NYSE:MSM) is a must-buy today.
The
fundamental bull theses for MSC Industrial still seem to be in place.
MSC Industrial is a well-run distributor with a strong core in
metalworking that is looking to leverage its CCSG business to address
new industry verticals (beyond manufacturing) and to enter new adjacent
markets (like fasteners). On the other hand, the company is seeing
margin pressure as it spends on initiatives to drive future growth and
sales growth targets may be pressured by weak pricing and increased
competition from the likes of Fastenal (NASDAQ:FAST) and other distributors.
Read the full article here:
Short-Term Concerns Stacking Up At MSC Industrial
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