Monday, June 28, 2010

June 28,2010 Home Depot and Train Depots


June 28,2010 Home Depot and Train Depots 

BKS, Barnes and Noble did miss. They hoped not to loose 81 cents a share. We were thinking a loss of 85 cents a share. Wrong, they got whacked at 89 cents a share down with a 17% increase in top line sales.

Everyone (Well almost everyone) agrees that stocks are over sold a bit and we should see a rally. The market closed so close to yesterday’s number you need a Cray-2 Super computer to see the difference. Oops, just dated myself.

The G-20 announced that all members are going to cut deficits in half by 2013. That should have bumped the debt scared market up, but perhaps the market has a hard time believing this can be done. The market did not move. Mixed personal income and spending numbers did nothing for the market either. Do you think the market is waiting for job numbers? Good guess.

I had two people over the weekend ask me about HD, Home Depot. I only mention it as I have not done the homework, but will and report here, but Cramer had an alert this morning and he dropped some of his HD. He thinks we will be dealing with poor housing data for some time to come. I suggest you join Action Alert Plus at for more details or watch Mad Money on itunes. I did not get to see today’s episode but I will be surprised if he did not mention it.

It made me feel good today that two Forbe’s article had typos. Sometimes I go back and read this blog and think you must all think I am either drunk, tired, or stupid. Two out of three ain’t bad.

Earlier in the day we added to MDR McDermott, FLS Flowserve, and CVX. I also put some limit calls on Sep 12.50 calls on Greenbrier GBX if I can get them at 1.25 each. They are a fairly strong player in the rail car business. Fundamental don’t look perfect but they are well positioned for a recovery. I do not recommend this for the weak of heart. More info taken from FinViz: The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in the United States, Mexico, and Poland. It offers double-stack railcars; boxcars used in forest products, automotive, perishables, and general merchandise applications; covered hopper cars for grain and cement industries; gondolas and coil cars for the steel and metal markets; conventional railcars; center partition cars for the forest products industry; bulkhead flat cars; flat cars for automotive transportation; and solid waste service flat cars. It is selling for 12.50 and has target prices of 19-20.

I owe one of our readers some comparative homework on CVX versus XOM. Give me a day for those as well as the home Depot stuff.

Salve Lucrum


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