Like What I Heard

The Lowe's conference call was music to my ears:

  • Sales seem to have stabilized.

  • They are slowing down expansion and focusing on improving current stores.

  • They are returning more cash to shareholders via repurchases.

I believe management at Lowe's are taking the right steps and have faith that the valuation gap between Lowe's and Home Depot will continue to close. The valuation gap has shrunk by over 7% since I put the trade on. I am pressing my bet and believe there is at least 20% more.

No comments: