John. perhaps Im too cautious, however seen a nbr of companies self destruct(or close to it)when trying to expand over 10-20% per year. In the case of SHW they seem to have bitten off a pretty large chunk(new larger stores, servicing, remodeling all current stores, expansion, new sales formats, training,new computer systems etc etc), their head office is very thin(if it works great,keeps costs down). Its a real juggling act and as Im sure you are aware different types of management style are required and sometimes management can't adapt.
Anyway, it looks cheap, I have a very small position, just a little bit of fun right now..
Scott
PS: Re warranties, I believe they are keeping it on the balance sheet, which probably is the best thing provided they know what they are doing. Re Majestic, I got stiffed on a warranty, I never buy them, however with Majestic the deal was too good on a VCR I bought ($60 for 2 extended years and if you didn't use it you got your money back. I didnt use it, and didn't get my money back since they went tits up..
Scott |
