Changes to my retail stock basket: closed WMT, punched up position in BIG (is at fair value based on current p/e; relatively low p/e vs relatively high roe although not much revenue growth year over year; continual reduction in stock price attracts), and added to DG.
Coming late to the party, but not too late I hope, I open a tracking position now in LOW. Am betting on several housing stocks, and I'll add LOW to this package. If new housing does ok, contractors/home remodels should also be a beneficiary.
Positive article in this week's Barron's:
Lignelli (CEO and portfolio manager at Incline Global Management, a New York hedge fund that holds Lowe’s stock) ticks off four positives for Lowe’s: a strong economic and housing backdrop, improving profit margins, an Amazon-resistant business model, and an aggressive share-repurchase program that has cut the company’s share count by more than a third in the past six years. During the current fiscal year, Lowe’s expects to pay out more than 100% of its net income to shareholders through dividends and share buybacks; the stock yields 1.7%.
As with BIG, I like the share count reduction aspect: In 2007 LOW had 1.57B shares out; now I see .87B.
finance.yahoo.com
finance.yahoo.com |
