Staples is a horrible comparison. Fastenal is opening more stores, I believe they said 7-10% this year. Staples overhead per store is way higher, not to mention the lease per square footage for the different size and type of buildings. Retail space rents for way higher than warehouse space (2-3x more), not to mention the 30,000 sqft vs the typical 5,000 sqft size difference. Besides how many people work in each Staples location vs Fastenal store?
It's Würth Fastenal pumper. They have too many stores. Look at Staples, closing hundreds of stores.
Actually they can keep their margin there. It is all about product mixed sold. Fasteners bring way more margin then janitorial, cutting tools and power tool sales. Since they are the largest fastener distributor in North America and are expanding in Europe to go after Worth, they should be able to keep their margin where it is.
Simple FYI to everyone reading this post - You will notice that Bob Kierlin is the primary seller of this stock in meaningful amounts, occasionally Steve Slaggie. Both of them make substantial contributions to charities, educational programs & organizations, etc. in the local community. So don't read too much into this money being pulled out of FAST because of concern....
So does lead us to believe that the (significantly) higher volume of sales vs. buys+options means a negative future outlook?
Monthly summaries of insider trading activities (stock purchases, sales, and option exercises) reported by insiders of Fastenal Co since 2005 are illustrated in Table 1 and Table 2. Table 1 shows the monthly insider trading data of Fastenal Co since year 2005. Table 2 shows the detailed insider transactions of Fastenal Co since 2005. The reporting company's ticker symbol is FAST. The reporting company's CIK number is 815556.
The total value of stock buying since 2005 is $5,348,999.
The total value of stock sales since 2005 is $327,449,119.
The total value of stock option exercises since 2005 is $23,017,500.
grants interest rate observer just put out nice piece talking about how overvalued this thing is. makes nice mention about insiders selling $15.3mm of stock last year versus buying $404,000 this year. sorry to burst your bubble truth_in_nyc!!!!!!!!!!!!! now who do you trust??????????????
Sentiment: Strong Sell
Question for stopthebluebleeding, can you elaborate on the pay structure of the
district managers? If they are bleeding them poor, how long before they leave the company?
The insider purchases are probably positive, but positive stock movement could be a year or 2 out...otherwise it would be insider trading.
Do you guys think the purchases by insiders on 1/27 and 1/30 were "forced" as an expiring option? If they weren't, you would think positive price movement is coming in the not-so-distant future?!
Sentiment: Strong Buy
There won't be a problem covering the additional labor expense, they've taken away bonus' to district managers that don't show an increase in pre-tax profit, so if a district had profits in Q4 2012 of $100K he/she earned a very nice bonus, now in Q4 of 2013 that district only had profits of $99,999 it wasn't growth, so he/she makes ZERO BONUS, the company still got it's $99,999 but paid no bonus...BRILLIANT!!
I eagerly await the release of officer earnings and see if they were deprived of any bonus'
Sentiment: Strong Sell
The turnover rate of employees at Fastenal is a huge number. Add in a store in every one horse town and where will the growth come from? They need to get prepared for the coming attack from Amazon Supply.
So you have $3.3 $billion a year in sales, which is respectable, but the $13 $billion market cap is simply too high for a now low growth public company. This is a giant disconnect and will resolve at some point.
do the simple math!! company had almost 2500 more employees this month versus last year. assuming total annual cost with all fringes of $45,000 per person is $113mm of incremental annual expenses or $9.4mm per month. this means monthly sales have to be up $19mm (use 51% gross margin) just to cover the expenses. monthly sales were up $18.3mm. didnt get there. and by the way, i am not including any new store expenses, increased distribution costs, etc. here comes the margin squeeze!