Don't Overlook This Beaten Down Stock, Dan Nathan Says

Bullish Studio

A warning from Fastenal CEO on signs of slowing demand?   Dan discusses not making the mistake of discounting headlines and says you should pay attention to a stock that has a new 52-week lows on big volume.

Transcript

00:00 You've got a buzzkill in the manufacturing sector.

00:02 Fastenal went into freefall after the CEO of the industrial supply company said it saw

00:06 signs of slowing demand in May and June.

00:08 The stock closed down more than 6 percent, its biggest loss since March 2020.

00:12 Dan, you flagged this.

00:14 Yeah, I mean, here's one where, again, I think that if you look at every cycle, I only know

00:19 about this company because I don't follow it, I don't trade it or whatever.

00:22 I remember in the recession 20 years ago, a much smarter, you know, a more experienced

00:27 person than me said, watch these guys, watch the guys who make pallets, watch this, that,

00:31 whatever.

00:32 And when you see this sort of headline and you see a stock making new 52 week lows on

00:35 big volume based on this sort of guidance, I think you really want to pay attention and

00:38 start thinking about who are their customers, who are similar sorts of companies that feed

00:43 into these sorts of end markets.

00:44 And I think that you would probably make a mistake if you just discounted this because

00:48 you didn't think it was that important of a company.

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