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Why I'd Avoid Anixter (AXE)

|Includes:Anixter International Inc. (AXE)

Having just seen the article seekingalpha.com/article/1400691-anixter-s-competitive-advantage-world-class-customer-service

I decided to take a look at the stock of Anixter (NYSE:AXE).

I see very little exciting about the company.

The two most exciting statistics the stock has going for it are:

  • Forward P/E of 10
  • PEG ratio of .75

Some of the drawbacks:

  • Revenues and gross profits dropping for 3 straight quarters.
  • No dividend.
  • Balance sheet and cash flow not impressive.
  • Insiders are -not- buying the stock.
  • It would take 3 years to pay off existing debt with EBITDA.
  • Nearly 14% sold short. Short sellers don't pile up like that for no reason.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: Further, I wrote this of my own free will, with nobody paying me for the contribution.

Stocks: AXE