Seeking Alpha is a platform for investment research, with broad coverage of stocks, asset classes, ETFs and investment strategy. They recently posted a summary on Anixter International.

Their Summary is as follows:

• The company has been "up for sale" several times over the last decade and rumors earlier this year have failed to produce a suitor which is a giant red flag.
• The recent Tri-ed acquisition appears extremely expensive to us when factoring in interest costs, leverage risks, and amortization expenses.
• We are not keen on the company’s middleman position, the value proposition they provide, nor the long-term prospects of the industry.

At over $87 per share, Anixter International (NYSE: AXE) is now fully priced for sales that the market is fully expecting.

Our (Seeking Alpha) sense is that the end markets for wire and cable are still weak with fasteners seeing even greater softness.

Meanwhile, growth outside of North America is showing no signs of a recovery in their industry. We are bearish on the name as the end-markets appear weak and the long-term trend is away from wire and cable usage and towards wireless systems.

Meanwhile, the company with its largest shareholder, Sam Zell, attempted to find a suitor earlier this year but was unable to find any takers.

That to us, given Zell’s name and the lack of any bids, is a large red flag.

Business Overview Anixter is a global distributor of enterprise cabling and security solutions, electrical and electronic wire and cable, and OEM supply fasteners and other small parts. The business model attempts to propose a value proposition to customers by reducing risk and complexity in purchase decisions, business processes, and supply chains.