Snap-on, Inc. (SNA)

Showed up on a screen for solid 5 year growth with low debt, cash on hand and still at attractive P/E ratios.

Although this company has earned average ROIC in the past, I believe this company can raise this up in the near future. They are the market leader within their segment, at roughly 50% of the pro tool market. This company has been struggling as they have been unable to maintain the number of dealer franchisees, which has caused them to lose market share and diminish potential profitability. I believe in the short term the company will be able to add to market share by improving these relationships. In the long term I believe emerging markets will catapult growth. The company has begun to move manufacturing to these areas helping establish a presence. As the average wealth grows within these countries the number of car sales(~70% of revenue is car related) should grow rapidly; due to the company's franchise model I believe the company is best positioned to grow within these areas. This is a great time to buy, as shares have been beat down due to franchisee troubles and general automotive turmoil(Whether or not there will be better times to buy is beyond me, if there are I'd buy more). This should outpace the S&P easily and could create massive wealth over time.

I just did some research on snap on and feel it is a strong play for a well diversified portfolio and you could see up to a 45% return if the stock reaches its fair value estimate. Read more at my blog

http://stocklook.blogspot.com/

Growth has slowed....but cars still need maintenance & repair.
P/E 11 ind 18, operating margin 12.6 ind 9. Will rebound.

bull

They pay a nice 4% dividend. They have moderate debt, a low peg, and generally good numbers.

Excellent quality tools needed in a variety of industries. Financed interest free up to a couple of thousand dollars.

Less dealerships equals less alignment racks. business management software, hand wrenches, etc.etc.
When these dealerships close, will the equipment be destroyed or auctioned? Auctioned. This is a huge amount of new competition for their products.

Five stars?!! Where's the growth going to come from? Their distribution model requires insane margins. They get that much from pro mechanics in the US because their tools are cultural totems -- you ain't a pro if you're using Craftsman, etc -- but that's just not gettable from non-pros, overseas, etc. And it's not like the number of old-school car mechanics in the US is exploding. What's the case for this thing? I'm not seeing one.

Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 4/20 picks.

good stock

auto parts stores will be busier than ever as owners try to keep their late model vehicles on the road longer. this industry should "thrive* in the recession. high recent TM activity.

Despite quarterly dividends of $.30 per share for the last 2 quarters Snap-on is nearing its 52 week high and will plateau there and then fall as purchasers of their products belts keep tightening under the stress of higher fuel costs. Most consumers are mechanics and are not going to buy unless absolutly necessary.

part of the mattchenzo 50, picked from the s&p500 on fundamentals, almost sure to outperform!

canslim screener

Sixth pick. 6of 7

zacks pick

Small tools - fait intrinsic value to price ratio

same as most up and down