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Non-Tech : Home Depot (HD)
HD 362.30-1.6%Nov 14 3:59 PM EST

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To: JEFF who wrote (122)3/27/1998 10:25:00 PM
From: Carter Patterson  Read Replies (1) of 1169
 
Why is everyone so hung up on stock splits. The Yahoo board is full of gibberish about stock splits. They are meaningless to real value, although I do acknowledge they do sometimes cause the stock to increase in value temporarily.

However, fundamentally they make no difference to the valuation. Over time, earnings are all that matter!!!! For a long term investor, watch earnings growth.

I am a long term holder in HD, a truly wonderful company, but the current PE is pretty damn high. It may move sideways for a while now. PE expansion does not make sense now, unless they see an earnings acceleration to 30% Y-O-Y.

Everyone, please stop this madness!.
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