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Tractor Supply Co. (TSCO)

Tractor Supply Co. (TSCO, Nasdaq) was the only 2 for 1 split announced in July, somewhat to my surprise. With earnings coming in strong, I expected more companies to feel confident enough to announce a split. Apparently, confidence has not built up to quite that level as yet. Therefore, when a company like TSCO does take the plunge in this market environment, it deserves our very special consideration. Tractor Supply is a retailer that has carved out a solid footing in a very interesting niche. Catering to the recreational farmer and rancher, as well as to small businesses and tradesmen, it has built a network of over 900 stores in 44 states, selling everything from horse feed to welding machines to cowboy boots. I had never heard of this company, so I visited the nearest store to me, in Gilroy, CA, and was suitably impressed. It was definitely not a ‘big box’ outlet and the clean and friendly store seemed perfectly stocked for the customer living a country lifestyle. TSCO has grown from a mail-order tractor parts business started in the 1930s. It is now adding 70 to 90 stores a year to its network and plans to grow to 1800 stores. This growth is occurring with almost no long-term debt and while the company is paying a 0.8% dividend and buying back its stock. While acting like a growth company, TSCO’s stock is traded with the PE and price-to-book ratios of a value stock, and its volatility is significantly lower than the market’s. What’s not to like? I’ll be buying next week.

Neil MacNeale, 2 for 1 Stock Split Newsletter

Neil Macneale III is the major stock holder of Neil Macneale, Inc, the owner of the 2 for 1 Index® and the publisher of 2 for 1®, the stock split newsletter. He lives with his wife in Menlo Park, California in the house they bought 41 years ago. Born and raised in Cincinnati, Ohio, Macneale came to California to go to Stanford and never looked back. After graduating with a degree in Political Science, then serving for two+ years in the VISTA program, Macneale went into the construction business as a general contractor, field superintendent, and then home inspector. In 1996 Macneale qualified with the SEC and the State of California as a Registered Investment Advisor and began writing the 2 for 1 Stock Split Newsletter. In 2014, Macneale licensed the 2 for 1 Index to USCF Advisers for their use in the management of their Stock Split Index Fund (NYSE: TOFR). The 2 for 1 Index and newsletter now take up about half his time, with the rest spent buying and fixing up old houses “just for fun”.