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Non-Tech : HOMEBASE (HBI)
HBI 6.4700.0%Dec 1 4:00 PM EST

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To: Scott Mc who wrote (39)8/21/1998 1:29:00 PM
From: Ronald J  Read Replies (1) of 99
 
Scott,

With both Lowes and Home Depot expanding in the West it just makes sense for HBI to be acquired by either of them. HBI already has the locations, customer base and size that they both need. If they are not acquired and Lowes and Home Depot enter their markets they will have a tougher time competing. Also, now if they are acquired they have earnings which would be a major benefit to the buyer.

Either way, this stock is still undervalued and at a PSR around .2 compared to Lowes over 1 and Home Depot over 2 it is extremely undervalued!
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