DXP Enterprises, Inc. (NASDAQ:DXPE)

A growth proposition

good financial report indicators....

although this stock is down today it is a good company and has done well for me so far and I believe it wil continue.

continued buyouts of smaller players...good management...

I'm writing this pitch because i don't really see any others that have explained the truly compelling nature of this company. To put it simply, this is the Wal-mart of the industrial supply companys. Particularly in the niche of all sorts of nick/nacks (pumps, drills, safety equipment, dies, bearings, etc). They have benefited from the oil industry and to the extent that sector is hurt, DXP will be hurt as well.

But the real gem of why it is a Wal-mart is that they are acquiring mom/pop companys and bringing them into the DXP fold. The CEO says they have a list of over $200 million worth in mom/pop acquisition candidates. They will, however, be making a big acquisition soon is my guess.

Also, they are adding "service centers" throught the USA (regional to national play) and are trying to build them out as a sort of one stop shopping. Management has a stated goal to turn this into a $1 billion dollar company and i think they will get it done over the next 3 years.

A couple warnings though. The stock can swing very hard both directions so you have to have the stomach to deal with this. I recommend buying only on weakness.

IBD A ranking.

MACD favorable.

ER 4/26

Nothing but growth ahead. ROE getting better

Will be at $50 within a year, just not in favor right now.

Good growth story

Going to cointinue to rock - I made a bunch in the drive from 28 to 35.

if you don't buy oil companies, buy a company that supplies parts to oil companies.

Oil service Co which has the potetial of being a billion plus market cap in the next 5 years.

Speculators will favor this company and stock price should appreciate nicely over the next year. Good value but will be volatile.

Sensitive to energy prices.

This stock will be over $50 again by May.

Oil and gas pumps equipment for natural gas transport and oil well efficiency.

Another Reg SHO test, 9/22

right industry, growth, small float, volatile