LOW and HD

[divmenow]

2 great stocks that may be hitting new lows soon. Wall Street punishing them. All I keep hearing is how great housing is doing but yet these 2 darlings keep selling off.  There not expensive at all. Anyone nibbling here or do you expect continue selloffs?

[EricL]

I have no idea what they will do in the short term, but I bought an opening position on LOW about a month ago and hope it stays down for another month or two so I can add to it again.

Both have tremendous long term track records and I think are good picks to buy and hold.

Here is the write-up I did on Lowe's when I bought it back in September if you are interested.

Recent Buy: Lowe's Companies

[crimsonghost747]

LOW definitely sparked my interest. Question is, why has it been declining so much? PE ratio seems to be historically low too so it's not like the recent decline can be explained by a pull back to normal valuation.

[blkflm6888]

Question? Would or should its debt concern you?

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[crimsonghost747]

(10-26-2016, 01:39 AM)blkflm6888 Wrote: Question? Would or should its debt concern you?

The current debt level is not a concern to me, not at all. They have a pretty good amount of free cash flow and if you look at the debt maturities, there really isn't much going on until 2019. And they are doing pretty massive share buybacks, something that can be toned down if necessary.

However I do share some concern about just how fast the debt has gone up, let's hope the management decides to keep it at the current levels instead of taking on more debt.

[divmenow]

Wow what a dismal earnings report from LOW this morning. Horrible.. How can HD get it so right and Low so wrong. I guess new Lows are coming.

[EricL]

Huge beat for LOW this morning, and guided above consensus EPS estimates for 2017 as well.

It's up nearly 10% on the news.

Forward guidance is for $4.64 in 2017, which is a PE under 18 at current prices. Still a good value considering its high growth rate.

[crimsonghost747]

Well I was expecting a decent report but this one was definitely outstanding. Bad thing is, I was planning on buying more in about a week when my salary comes. ohh well, still might be worth adding some more for the long term, though I would have certainly liked to buy them 10% cheaper.

[NilesMike]

Got another chance today

(03-01-2017, 12:48 PM)crimsonghost747 Wrote: Well I was expecting a decent report but this one was definitely outstanding. Bad thing is, I was planning on buying more in about a week when my salary comes. ohh well, still might be worth adding some more for the long term, though I would have certainly liked to buy them 10% cheaper.

[crimsonghost747]

(05-24-2017, 05:49 PM)NilesMike Wrote: Got another chance today

(03-01-2017, 12:48 PM)crimsonghost747 Wrote: Well I was expecting a decent report but this one was definitely outstanding. Bad thing is, I was planning on buying more in about a week when my salary comes. ohh well, still might be worth adding some more for the long term, though I would have certainly liked to buy them 10% cheaper.

Yup, and I took advantage of it.

[Binary]

Lowe's forward yield is quite high, might be a good time to jump in?