The Nuts Bolts at Fastenal
Fastenal Co. (FAST) announced a 2 for 1 split back in April of this year. At that time, I wrote that the company was in a business that would suffer when the economy went into a tailspin and I thought it wouldn’t be able to maintain its impressive upward momentum, notes Neil Macneale, editor of Stock Split Newsletter. I was right that it couldn’t maintain its upward momentum but I was wrong about the cause. As it happened, instead of a recession, the Trump tariffs have been a big drag on FAST and the stock is down 16% since the split was announced on 4/18/19. So, besides the drop in price, has anything else changed? Of course, because of the decline in price, all the numbers such as PE, price-to-book, dividend, earnings, and returns all look a little better now. What hasn’t changed is the fact that this company makes and sells stuff we actually need, i.e.