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