cfa-society-of-chicago-june-2015-final Note pages 16 through 18 on Grainger and Fastenal. GWW_VL Jul 2014 and Fast VL. Since the prices are high and their gross margins are way above the competition, what can change that? Ask the right questions.
cfa-society-of-chicago-june-2015-final Note pages 16 through 18 on Grainger and Fastenal. GWW_VL Jul 2014 and Fast VL. Since the prices are high and their gross margins are way above the competition, what can change that? Ask the right questions.
I spilled spot remover on my dog. Now he’s gone. — Steven Wright
W. W. Grainger (GWW)
Someone asked what data tools do I use. My brain and a Value-Line.
Try to look at the Value-Lines WITHOUT looking at the price of the stock. What would you pay for this entire business–not knowing what it did and the current price of the company? Start with the numbers (excluding the stock price, at first) so to keep your prejudices at bay. Maybe have a friend print out the Vale-Line and cut off the top of the page.
GWW_VL Jul 2014 and GWW_VL Something should strike you about this business. What? Asset or franchise?
A competitor: Fast VL
Grainger_ Capital Allocation-FINAL Whoa? An announcement of a capital structure change–so a type of special situation. What does this mean?
Grainger_ 2015FactBook Time to dig deeper Grainger_2014_AR, Grainger 14BALST, Grainger 14EARN
Ok, about what is this company worth and what type of return could I expect at today’s _____ price?
Not a recommendation! Do your own thinking because then you learn from your mistakes AND successes.
If you don’t know or are not sure; it is just too tough, difficult, or confusing, then you can always do this:
And when I see the sign that points one way
The lot we used to pass by every day
Just walk away, Renee
You won’t see me follow you back home
The empty sidewalks on my block are not the same
You’re not to blame
From deep inside the tears that I’m forced to cry
From deep inside the pain that I chose to hide
Just walk away, Renee
You won’t see me follow you back home
Now, as the rain beats down upon my weary eyes
For me, it cries
Just walk away, Renee
You won’t see me follow you back home
Now, as the rain beats down upon my weary eyes
For me, it cries
Your name and mine inside a heart upon a wall
Still finds a way to haunt me though they’re so small
Just walk away, Renee
You won’t see me follow you back home
The empty sidewalks on my block are not the same
You’re not to blame
Posted in Special Situations, Valuation Techniques
Tagged Buy-Back, GWW, Special Situation