Mayo

Home Depot: Bye Bye Buyback

The HD situation reminds me of MCD back in 2002. Like MCD, HD's operational problems are fixable and I believe they will be over time. The housing market will rebound eventually and when it does HD should do very well. The market value of te company is now below where it was 9 years ago yet the cash the business produces is much larger. As far as Lampert, I believe he is probably seeing the value of the real estate that HD owns which is severely understated on the balance sheet (reported at cost).