This is a fundamentally sound stock, with a solid earnings history. It's always disproportionately beaten down by a bad market because so few people understand what they do. DXPE sells replacement parts (new and reconditioned) for all kinds of pumping equipment. These are not discretionary products. If companies want to keep moving fluids (Oil, Water, Chemicals) then they have to keep their equipment and fluid carrying infrastructure operational. DXPE has put its earnings to good use, snapping up minor competitors to build their geographic presence and the breadth of their product offerings. Because this stock is so volatile, it's not for the faint of heart, but right now it's an unbelievable bargain. In my real life portfolio, I'm planning to get in and out of it several times in the next month or so, playing the 10 to 15% swings. But I consider it a good investment in the medium-term as well.
$10.39 (11/12/08)
