“Davidson” submits:
Fastenal(FAST) and Kansas City Southern(KSU) have reported record Revenue and Net Income but remain well under historical pricing metrics. Note that business conditions as tracked by the Chemical Activity Barometer(CAB) remain at record levels. Ecolab(ECL) also reported records but still priced below previous pricing metrics. Market psychology has priced each of these issues differently than in the past even though each is successfully executing business plans to drive record financial performance.
When markets do not respond to positive news as in the past, one needs patience. Price histories of each shows that eventually investors favor good fundamental performance. Being diversified with 40-50 well managed companies is the only means one has to benefit from shifts in unpredictable investor market psychology.
