coolio
10-03-2006, 01:29 AM
Which to buy?
Both have been beaten up lately with the downturn in housing. Both are about the same level in terms of valuation. I think the price on both reflects what the street thinks about them with relation to housing. PEs roughly equal. CEO Nardelli probably reflects 2-3 dollars in HD's share price. If he were to be gone, the stock could rise a few dollars. However, he may have learned his lesson from the demonstrations during the last shareholder meeting.
I need to get exposure to housing-retail related stocks. I missed getting on board the oil and gas stocks when they tanked. I think that may have been the bottom for that sector. I think this is as low as HD and Masco will see.
Both have been beaten up lately with the downturn in housing. Both are about the same level in terms of valuation. I think the price on both reflects what the street thinks about them with relation to housing. PEs roughly equal. CEO Nardelli probably reflects 2-3 dollars in HD's share price. If he were to be gone, the stock could rise a few dollars. However, he may have learned his lesson from the demonstrations during the last shareholder meeting.
I need to get exposure to housing-retail related stocks. I missed getting on board the oil and gas stocks when they tanked. I think that may have been the bottom for that sector. I think this is as low as HD and Masco will see.