The Core-Mark Roller Coaster Back At A Low Point

You wouldn't think distribution would be such a volatile business, but not only are there a lot of moving parts to Core-Mark's (CORE) business, the margins are thin enough that even a small matter can have an outsized impact on results. While investors had seemingly made their peace with a more aggressive/competitive approach from rival Berkshire Hathaway's (BRK.A) McLane operation and erratic progress on value-added service initiatives, greater uncertainty around the company's tobacco business has brought on a lot of selling pressure.

I wasn't all that interested in the shares back in June due largely to valuation. With the shares down roughly 25% since then, though, it may be worth taking another look at this company. While the risks to the tobacco/nicotine business are real, so too is the growth in non-nicotine categories, and Core-Mark is looking to embrace more technology and more automation to improve margins.

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The Core-Mark Roller Coaster Back At A Low Point