Distribution Now (DNOW)

Awesome balance sheet (Q2, 2015)

$114M cash/$1.9B equity/$457M Goodwill/$80M LT Debt.
EV ($18) = $1.7B

Management

Same people who ran National Oilwell Varco (Pete Miller, CEO of NOV for 13 years, is executive chairman).

Valuation

A 5% net margin is quite achievable. With P/S of 0.5 at the moment one is paying a P/E of 10.

Business

Pipe, valves and valve automation, fittings, instrumentation, mill and industrial supplies, tools, safety supplies, electrical products, drilling and production equipment, fabricated equipment, and industrial paints and coatings.

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