Whitworth said the news paves the way for strategic changes at the company. He said the stock is 50% undervalued and that his firm will continue its efforts.
Whitworth said the big questions is what Home Depot is going to do with its enormous cash flow. He said if the company continues on the same path they will continue to pressure the company. Whitworth wants the company to stop spending money on the supply business and instead use the money to buy back stock. He said the company is unleveraged and can take on 20%-30% leverage, which they can also use for buybacks.
Whitworth said he was not completely surprised the company changed its support for Nardelli.
He said his firm has not yet met with the company, but plans to in next few weeks. He said the company needs fresh blood on the board, and said his firm intends to push to nominate their representatives.