A diary of the thought process behind my investment decisions
Added To A Loser
I added to my market neutral Long Loews / Short Home Depot trade. I am down a little over 1.5% on the original position. I see no reason why Home Depot should trade at over a 25% premium based on 2012 free cash flow estimates. Loews aggressive share repurchase program makes it likely that this valuation gap will close.