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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (16056)	1/3/2003 1:44:41 PM
From: Wallace Rivers	Respond to of 78554

I don't own CMO right now, the current move seems silly to me...most near term gains will be largely taken out on the ex date for the special dividend. The fact that the company is entering a totally new line of business gives me pause, as well. HD - well, I'd looked at it, and passed on this falling knife. I passed then because my experience as a consumer was less than stellar. That is supposed to be the company's current bugaboo, and that was confirmed by these in store visits. I am passing now, because the company is now experiencing almost nil growth; it could be argued that the PE, while certainly not what it once was, is still too high for a company experiencing such slack growth. I've never been to a Lowe's, but it does appear that they are stealing market share from HD. Although LOW PE is higher than HD, there still appears to be impressive growth potential for this company. For that reason, I have a lower bid in on LOW on this "baby with the bath water" sell-off.

To: Paul Senior who wrote (16056)	1/3/2003 2:00:36 PM
From: Mark Marcellus	Read Replies (1) \| Respond to of 78554

Re the HD off balance sheet stuff, I'm fairly well satisfied on that score. When I add the current value of the operating leases in with debt, I still get a liability/asset ratio of .41 as of the end of FY '01, which I consider acceptable. There are plenty of issues to consider with this company, but IMO the crucial ones are the operational issues, not the balance sheet (which I consider a strong positive). Re negative reports driving the price lower, the next catalyst for that will probably be their analyst meeting on 1/17.

To: Paul Senior who wrote (16056)	1/4/2003 12:01:14 AM
From: Scott Mc	Read Replies (1) \| Respond to of 78554

Perhaps they are not so arrogant that they can't learn from Lowe's and work on their customer service too. What about Lowe's then? They were off today as well, why not buy them instead of HD?? Disclaimer, I own a tiny position in Lowes from a dividend from my Eagle Hardware(now there is a name from the past), after selling the Eagle. Why sell these positions when the commission may be 20%+ the value?

To: Paul Senior who wrote (16056)	2/23/2005 4:59:43 PM
From: Paul Senior	Respond to of 78554

Added a little to my Home Depot position today. WSJ headline: "Home Depot Earnings Rise 9.5%. But Margins Help Pressure Stock". Also from Reuters: "Lowe's profit Up, But Outlook Disappoints". Low ended up for the day; HD down. Results at Masco might be more telling. (MAS, a stock in which I have an exploratory position). It's a big supplier to HD and today predicted a worse than expected fiscal '05. I'm surprised (so is the market apparently), but maybe should not have been: I had noticed a bunch of insider sales in the past few months. HD still has some revenue growth, has reasonable profit margin for the current stock price (imo), and a relatively low (HD compared to its previous years) forward p/e (13+). Total debt/eq. is very small, with total cash about equal to total debt (per Yahoo). finance.yahoo.com finance.yahoo.com