MSC Industrial Offering Weaker Execution On Lower Expectations

As an investor, I err to the side of being too patient with under-performing companies with good underlying businesses and that has been the case with MSC Industrial (MSM). I wasn't impressed with the company's performance last quarter and the near-term prospects for the industrial sector, and the shares are down another 10% or so since then.

Although management is taking a few modest positive steps and the dividend yield is pretty good, I remain concerned that the company doesn't really have a strategy for driving better performance in a world where customers have increasing price transparency and where the internet is eroding the company's historical competitive advantages. Valuation is not demanding now, but I consider this a future source of funds now given the ongoing issues with management execution.

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MSC Industrial Offering Weaker Execution On Lower Expectations