Home Depot, Odd Duck (HD)
The movement of the shares in Home Depot may not be a good indication of the business. The company had the highest increase in shares short in the NYSE mid-June report, rising 56.3 million to 77.8 million shares.
Granted, the company has an options timing problem, and shareholders are furious with the pay package that the CEO received. The stock now trades very near its 52-week low of $36.04, well down from the period high of $43.98.
On the other hand, the company has recently announced that it is buying back $2 billion of its own shares. The company's net sales in the period ending April 30 were $26.41 billion, up 13% from the prior year's quarter and operating income rose 21% to $2.4 billion. The average ticket on a customer purchase rose over 4% to $60.75. Weekly sales per operating store were down 2.8%.
The company's revenues in fiscal 2004 (ending February 1) were $64.8 billion. Operating income was $6.8 billion. For fiscal 2006, revenue hit $81.5 billion and operating income was $9.4 billion.
What makes very little sense is that Home Depot stock closed at $35.44 on June 23, 2004 and at $36.41 on June 3, 2006.
Given the huge increase in both the company's revenue and operating profit, that does not make any sense.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in any of the companies he writes about.
Granted, the company has an options timing problem, and shareholders are furious with the pay package that the CEO received. The stock now trades very near its 52-week low of $36.04, well down from the period high of $43.98.
On the other hand, the company has recently announced that it is buying back $2 billion of its own shares. The company's net sales in the period ending April 30 were $26.41 billion, up 13% from the prior year's quarter and operating income rose 21% to $2.4 billion. The average ticket on a customer purchase rose over 4% to $60.75. Weekly sales per operating store were down 2.8%.
The company's revenues in fiscal 2004 (ending February 1) were $64.8 billion. Operating income was $6.8 billion. For fiscal 2006, revenue hit $81.5 billion and operating income was $9.4 billion.
What makes very little sense is that Home Depot stock closed at $35.44 on June 23, 2004 and at $36.41 on June 3, 2006.
Given the huge increase in both the company's revenue and operating profit, that does not make any sense.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in any of the companies he writes about.
posted by douglas mcintyre at 5:52 AM
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