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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (117759)	8/21/2001 2:03:37 PM
From: ild	Respond to of 436258

Home Depot hotline: Is there any doubt that Home Depot(HD:NYSE) is going downscale in terms of market? I suggested this on Monday's Columnist Conversation, noting that a new store recently opened in that thriving metropolis of El Centro, Calif. (El Centro?) Feast yourself on these numbers (provided by a short-seller who watches every twist and turn of the home improvement chain): Year to date the retailer has opened approximately 29% of its big stores in locations in which there are only 50,000 people in the surrounding five miles. Last year this figure was 19%. And in 1998, it was 11%. "You tell me they aren't saturated," the short says. Hard to argue otherwise. AmeriCredit, again: Monday's item here on AmeriCredit(ACF:NYSE), a lender of last resort for used-car loans, prompted one very savvy reader and bond investor (who doesn't want his name used, who isn't short AmeriCredit, but who knows this stuff) to write: "If you pull up AmeriCredit's spreadsheet on the company's Web site on the cumulative defaults on securitized transactions, you can see why. Subprime loans usually start out looking good; defaults are de minimus for the first year. That's because even bad credits rarely default soon after taking out a loan. However, defaults ramp up after 18 months and 24 months, depending on the portfolio. thestreet.com