| | | I agree on SFTBY. Bought a few shares as well. Don't really understand what they are doing but whatever it is, they are good at it. It's similar to the Malone stocks, good jockey and a nice discount to NAV should yield favorable results.
I am digging into the industrial distributors more. I think the large ones like GWW, MSM, FAST and AIT have a moat because of the mindshare, depth of product offering and they have a long growth runaway because they operate in fragmented markets. I see how they automatically get orders just because their catalogue is known, they can ship quickly and sometimes get into the bill of material at which ordering is more or less automatic. Purchasing likes to deal with as few vendors as possible and they go on look at cost reduction only at a few items at any given time, so this does not tend to hit distributors with broad product offering much. These stocks are not cheap, but they are cheaper than they have been for a while due to some weakness, which I think may be partly weather related. More like buying a good or great business at a fair price, rather than a value stocks. |
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