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4 Stocks to Buy on a Crash Sale

Look for these overvalued stocks to get cheap in a crash

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Stocks to Buy After a Crash: MSC Industrial Direct (MSM)

stocks-to-buy-msmMSC Industrial Direct (MSM) is a very boring company, which in an of itself is a good reason it belongs in a list of stocks to buy.

MSM is a marketer and distributor of a broad range of metalworking and maintenance, repair, and operations products. You should always pay attention to distribution operations. It’s something I learned while in the movie business. The manufacturers might make money, but they are nothing without distribution. If you have a wide distribution platform, you can make tons of money, and that’s why the movie studios distribute their own films.

Plus, MSC distributes really important little objects that make a lot of machines run. Again, not a sexy business, but a good one to be in.

As far as MSM stock is concerned, 13% long-term growth for me translates into a 13 P/E on FY14 earnings of $4.  Fair value is $52, and MSM trades at $84.

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