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Stocks J / JLK Direct Distribution


Subject:  Re: Growth Stocks Date:  4/29/1999  9:23 PM
Author:  ricklow Number:  12 of 15

KMT paid Joel and Irwin $55 mil for this company that was just a regional mail order catalog company that was having a hard time paying their bills. KMT bought it to become the sole integrated supplier to the Saturn plant. Our industry was just beginning the process of consolidating all the Ma & Pa's. That process had many ups and downs and has basically stagnated of late. The independents that survived will continue and now there is no more potential for easy growth plus all the competition. Our industry is tiny compared to most and the remainder of the non acquired independents are not available. The catalogers are feeding off of each other's customers. A growth company needs lots of possible acquisitions for fast growth. An example of this would be AN (Auto Nation) which is buying up dealerships left and right. This is a huge market compaired to the industrial supply biz. I could expound on this subject for hours but my final thought is that there just is not enough pie for all the pie eaters in the tool biz.
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