In what has become an all-too-common pattern, industrial distributor MSC Industrial (MSM)
missed the mark in its fiscal third quarter and issued disappointing
guidance for the next quarter. This is quite disappointing for a company
and stock that badly needs some beat-and-raise quarters to re-establish
credibility with the Street, and the fact that the issues seem internal
(in other words, strategic/management mistakes) is not going to help
matters.
I do continue to believe that MSC
Industrial has a good position in a segment of the industrial
distribution market that should withstand competitive pressures from Amazon (AMZN)
and other online/e-commerce distributors more effectively than many
other distributors. I also believe the valuation now offers some upside,
though management’s inability to execute on anything on a consistent
basis is now a key concern.
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MSC Industrial Falls Short Again
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