While I had some concerns about Core-Mark's (NASDAQ:CORE) valuation back in March,
and there was a noticeable pullback in April that lingered for a few
months. The shares have fought back to just above break-even for the
year as this large convenience store (or "C-store") distributor
continues to deliver good same-store sales growth and EBITDA leverage.
My
concerns about the valuation are still in place, but I do still see
opportunities for Core-Mark to outperform in terms of customer
acquisition (competitive wins and M&A), improved infrastructure
utilization, and greater penetration of value-added services. Were the
shares to offer up another 10%-plus pullback, I would certainly be more
interested, but this at least looks like a credible hold for now.
Continue here:
Core-Mark Continues To Deliver With A Plan That Can Drive Further Growth
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