This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fastenal Quietly Locks Up Profits

NEW YORK (TheStreet) -- Fastenal (FAST - Get Report) is not so fascinating but it's a solid company.

In a previous life, I flew into a New England city on a weekly basis. On a lonely back road, I would pass a Fastenal store. I never thought twice about it.

For seven years I passed that solitary Fastenal store -- in the dot-com era so many businesses that opened with great expectations quickly closed with great disappointment. Nothing fancy or ostentatious about the store; just a utilitarian building. But the parking lot was often full.

Back then I had no idea what Fastenal did, nor whether it was publicly traded. My assumption was it had something to do with fasteners. I envisioned the ad campaign: "Fastenal: We fasten everything." I'm smart that way.

Little did I know that there were many more of those unobtrusive Fastenal stores, and that they had lots more than hardware and fasteners. The company sells industrial equipment, construction tools, safety materials and a lot more.

Years later, after I devoted myself to full-time portfolio management, I learned about Fastenal. It's not one of those companies that you hear about much, but it has a deep footprint among those taken-for-granted people who do physical labor, such as building and improving things.

Eventually, like a "channel checker," I wanted to find out the inside scoop on the business. I followed the shares for six months, looking at a potential investment from the perspective of a covered option writer. I bought in June 2013 and am currently on my fifth lot of shares.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FAST $46.79 -1.02%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs