Snap-On, and "cheap", in the same sentence?
Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i |
Snap-On, and "cheap", in the same sentence?
Ignoramus18183 wrote:
Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i The BIG thing that is hidden would be how many of those boxes you see are NOT paid for. Probably 2/3 are on financing plans through Snap-On. My very first box came in just shy of $14,000.00 with the box and a mechanics starter set. Cost me almost $2,800.00 in interest paying that one off. Think about haw many boxes are out there and how many of those folks are losing jobs! -- Steve W. |
Snap-On, and "cheap", in the same sentence?
On 2009-06-19, Steve W. wrote:
Ignoramus18183 wrote: Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i The BIG thing that is hidden would be how many of those boxes you see are NOT paid for. Probably 2/3 are on financing plans through Snap-On. My very first box came in just shy of $14,000.00 with the box and a mechanics starter set. Cost me almost $2,800.00 in interest paying that one off. Think about haw many boxes are out there and how many of those folks are losing jobs! I thought that car mechanics are now busier than ever, repairing cars that people keep instead of buying new? Is that wrong? I am completely open to the possibility that I am wrong about Snap-On, so if you change my mind, I will appreciate. i |
Snap-On, and "cheap", in the same sentence?
Ignoramus18183 wrote:
On 2009-06-19, Steve W. wrote: Ignoramus18183 wrote: Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i The BIG thing that is hidden would be how many of those boxes you see are NOT paid for. Probably 2/3 are on financing plans through Snap-On. My very first box came in just shy of $14,000.00 with the box and a mechanics starter set. Cost me almost $2,800.00 in interest paying that one off. Think about haw many boxes are out there and how many of those folks are losing jobs! I thought that car mechanics are now busier than ever, repairing cars that people keep instead of buying new? Is that wrong? I am completely open to the possibility that I am wrong about Snap-On, so if you change my mind, I will appreciate. i Some are BUT if you missed it there are a LOT of dealers going under. No job = no paying off the tools. The average box today starts closer to 20 grand and the dealerships are where a LOT of those are. The guys who have independent shops are seeing some increase but not really all that much. There are still a LOT of folks buying new regardless of the current problems. -- Steve W. |
Snap-On, and "cheap", in the same sentence?
On 2009-06-19, Steve W. wrote:
Think about haw many boxes are out there and how many of those folks are losing jobs! I thought that car mechanics are now busier than ever, repairing cars that people keep instead of buying new? Is that wrong? I am completely open to the possibility that I am wrong about Snap-On, so if you change my mind, I will appreciate. Some are BUT if you missed it there are a LOT of dealers going under. No job = no paying off the tools. The average box today starts closer to 20 grand and the dealerships are where a LOT of those are. The guys who have independent shops are seeing some increase but not really all that much. There are still a LOT of folks buying new regardless of the current problems. Steve, that's interesting thinking, thanks. Even if this happens, even to a large extent, it would still be a one time event for Snap On, right? i |
Snap-On, and "cheap", in the same sentence?
On Fri, 19 Jun 2009 07:38:16 -0500, Ignoramus5654
wrote: On 2009-06-19, Steve W. wrote: Think about haw many boxes are out there and how many of those folks are losing jobs! I thought that car mechanics are now busier than ever, repairing cars that people keep instead of buying new? Is that wrong? I am completely open to the possibility that I am wrong about Snap-On, so if you change my mind, I will appreciate. Some are BUT if you missed it there are a LOT of dealers going under. No job = no paying off the tools. The average box today starts closer to 20 grand and the dealerships are where a LOT of those are. The guys who have independent shops are seeing some increase but not really all that much. There are still a LOT of folks buying new regardless of the current problems. Steve, that's interesting thinking, thanks. Even if this happens, even to a large extent, it would still be a one time event for Snap On, right? i FWIW, Snap-On's credit operations are a separate company (Snap-On Credit LLC), a 50:50 joint venture between Snap-On and CIT Bank. http://www.businessweek.com/ap/finan.../D98PBV6O0.htm |
Snap-On, and "cheap", in the same sentence?
Ignoramus18183 wrote:
Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i This guy is incredible- he's some investment expert now. |
Snap-On, and "cheap", in the same sentence?
Steve W. wrote:
Ignoramus18183 wrote: Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i The BIG thing that is hidden would be how many of those boxes you see are NOT paid for. Probably 2/3 are on financing plans through Snap-On. My very first box came in just shy of $14,000.00 with the box and a mechanics starter set. Cost me almost $2,800.00 in interest paying that one off. Think about haw many boxes are out there and how many of those folks are losing jobs! I think the self-employed truck vendor carries the paper on a lot of his sales. |
Snap-On, and "cheap", in the same sentence?
"Steve W." wrote:
Some are BUT if you missed it there are a LOT of dealers going under. No job = no paying off the tools. The average box today starts closer to 20 grand and the dealerships are where a LOT of those are. How much do you want to bet the guy driving the snap on truck is holding the paper for the bad loans? Wes -- "Additionally as a security officer, I carry a gun to protect government officials but my life isn't worth protecting at home in their eyes." Dick Anthony Heller |
Snap-On, and "cheap", in the same sentence?
RB wrote:
Steve W. wrote: Ignoramus18183 wrote: Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i The BIG thing that is hidden would be how many of those boxes you see are NOT paid for. Probably 2/3 are on financing plans through Snap-On. My very first box came in just shy of $14,000.00 with the box and a mechanics starter set. Cost me almost $2,800.00 in interest paying that one off. Think about haw many boxes are out there and how many of those folks are losing jobs! I think the self-employed truck vendor carries the paper on a lot of his sales. Not usually. It is carried through a separate finance section of the company. The truck guys carry any special offer items on the truck, the rest is financed. Most of them work on commission based off sales volume. The two that I deal with are not hurting YET, but they can see the writing on the wall. Most of the workforce are staying with the tools they have instead of buying all the newest toys. -- Steve W. |
Snap-On, and "cheap", in the same sentence?
Cydrome Leader wrote:
Ignoramus18183 wrote: Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i This guy is incredible- he's some investment expert now. Really got a hard-on for Iggy , doncha ? I find some of his posts amusing , but overall he at least contributes to the group . Can you say the same about yourself ? -- Snag Tired of idiots with agenda's . |
Snap-On, and "cheap", in the same sentence?
On Jun 22, 7:00*pm, "Snag" wrote:
Cydrome Leader wrote: Ignoramus18183 wrote: Snap-On stock at 8 P/E, 4% yield, 16% return on equity, seems to be quite cheap to me. OK, tell me what am I missing. Competition from Harbor Freight has not killed Snap-On. It enjoys a decent return on equity, which suggests a superior competitive position and pricing power, which you know already by looking at their exorbitant prices and what is in mechanics' toolboxes. Manageable debt, cash flow commensurate with earnings, etc. I think that financing problems of its franchisers are overblown. They have regularly been purchasing their own stock. I think that they are attractively priced. Just $1,000 invested in Snap-On stock, would yield enough to buy four Harbor Freight wrench sets per year. i This guy is incredible- he's some investment expert now. * Really got a hard-on for Iggy , doncha ? I find some of his posts amusing , but overall he at least contributes to the group . Can you say the same about yourself ? -- * Snag Tired of idiots with agenda's . please don't feed the trolls. |
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