Assorted Odds and Ends
- Financial comparisons continue to be tough for companies, and Fastenal (FAST) is a prime example. The market is asking you to pay up -- using historical norms and the pre-summer rally -- for earnings of companies that are decelerating, even considering any cost cuts that are padding profit margins. I find it difficult to get excited on this proposition, especially given that there is risk to the decelerating growth projections.
- GNC (GNC): Give it a go-long into earnings, which should come later this month. The story will not disappoint, and I expect a good revision to the full-year earnings outlook, again. The company's online marketing is the best in the nutritional space. Further, this is a U.S.-centric business. It also offers products that, in my opinion, will be the last to be traded off should the fiscal cliff derail consumer confidence. This thesis deserves to be priced in now.