Home Depot
|
Company Name: |
Home Depot |
|
Stock Symbol: |
HD |
|
Stock Price, Close as of Friday, 06-07-02 |
$38.83 |
|
Auditors: |
KPMG LLP |
|
Unusual Statements: |
None |
|
Date of Most Recent Balance Sheet: |
3-Feb-02 |
|
Period covered by income statement: |
January 29, 2001 - February 3, 2002 |
|
Period covered by cash flows: |
January 29, 2001 - February 3, 2002 |
|
Major assets: |
Cash, Receivables, Merchandise Inventories |
|
Major liabilities: |
Accounts Payable, Long Term Dept, Deferred Revenue,
Salaries |
|
Major revenues: |
Retail Sales |
|
Major expenses: |
Cost of Merchandise |
|
Total assets at beginning of year: |
$21, 385 (in Millions) |
|
Total assets at end of year: |
$26,394 (in Millions) |
|
Amount of average total assets: |
? |
|
Net income for the year: |
$3,044 (in Millions) |
|
Actual Close price on June 7, 2002 (a): |
38.83 |
|
Expected Close Price on July 5, 2002 (b): |
45 |
|
Expected Point Change (b-a): |
6.17 |
|
Expected Percentage Change ((b-a)/a) |
0.158898 |
|
Actual Close Price on July 5 ( c ): |
37.99 |
|
Actual Point Change, June 7 to July 5 (c-a) |
-0.84 |
|
Actual Percentage Change, June 7 to July 5 ((c-a)/a): |
-0.02163 |
|
Actual Shares Purchased on June 7 (s): |
1287.66 |
|
Actual Amount Invested on June 7 (s*a): |
50000 |
|
Expected amount from July 5 sale (s*b): |
57944.7 |
|
Expected Profit/Loss (s*b)-(s*a): |
7944.862 |
|
Actual Amount from July 5 sale (s*c): |
48918.2 |
|
Actual Profit/Loss (s*c)-(s*a): |
-1081.63 |
I believe that this stock will be trading at $50.00 by July 5,
2002. The reasons are as follows: The summer months are the strongest for HD, being
a home improvement retailer. Sales are
traditionally very strong during the summer months, due to increased activity
in the Garden section, as well as general building. The economy will continue to be strong, which should push up the
level of permits for new homes, as well as remodels. The interest rates for home improvement loans are at a 20 year
low, which will stimulate the general level of trade in building materials.
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