Fastenal misses in Q3, but cash flow is okay

Even so, management definitely made sure to highlight the company's performance in terms of cash flow. It's true: the cash-flow statement may in fact calm shareholders a little. Net cash from operating activities increased over 40% for the nine-month period. And there was a nice jump in free cash flow, too.

Still, when you look at the section devoted to sales growth for stores open two years or more, your investor heart tends to sink. There are a lot of double-digit declines contained in the text, and they reiterate the idea that Fastenal is a business that is very sensitive to recessionary times.

Is the worst behind Fastenal? Hard to say, but it looks like the worst may be behind the actual shares of the company. Fastenal the stock has bounced far away from its 52-week low. It's edging closer and closer to the 52-week high, although it still has a few bucks to go on that count. I bet those few bucks will be difficult to achieve. A correction could be coming. If that happens, then I wouldn't want to be in Fastenal. For now, I am cautious at best on the investment potential attached to this equity.

Disclosure: I don't own any company mentioned; positions can change without notice.