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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (88676)1/20/2001 1:18:44 PM
From: Spekulatius  Read Replies (3) of 132070
 
HD is not a lumber mill, so there operating margins should not be affected by lumber prices - they just buy and resell the stuff. Of course, with a fall in lumber, they may have to depreciate their inventory, but this would be a special charge. The explanation of the earnings shortfall sounds fishy to me.
Right now, we are in a mode where earnings shortfall's don't matter, because Greenspan is supposed to lower interest rates and this will bail everything out. This fad will go over like many other fads before...
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