Congrats to SHW for coming in last place, 21st, in the "satin and eggshell" interior paint category. They managed an 18th of 23 in the "flat and matte" categories, but fell back to 20th of 21 in the "semigloss". Fourth, fifth, and tied for fourth most expensive, respectively, in its category. Proof, again, that this company, at least on the interior paint category underdelivers on performance for way too much money.
See you at $120 (revised up based on exorbitant 2012 outperformance).
I've made and lost money shorting SHW. Lost the last three rounds, but looks like will be winning this one ($170 strike May puts). You might want to check with some painting contractors about their opinion of SHW...Good luck with that. This is one of many stocks that have far more downside than upside near term...I like the prospective returns shorting LNKD and CRM far more, but housing in general is a close second.
Here is something for you to consider. SW doesn't change the formulation of their products on a yearly basis, however, the rating moves up or down from Consumer Reports. Why? Many of the testing methods conducted by CR have no correlation to real world applications of many products. As for 120, unless SW changes their philosophy on stock splitting, that train has left the station!
CR is as objective as an organization can be. Contrary to your assertion, Sherwin Williams products, consistently, are rated low in quality and high in price. I have yet to see an exception since I've been tracking (about five years now). Stock is not as grossly overvalued as a few others, e.g. LNKD, CRM, and most homebuilders, but is well overdue for a correction down well into the lower half of the $100's. Due to their poor quality/price point issue, the stock is not a buy in my book above $75...
Hey, thumbs down folks: Isn't the U.S. retail environment important to SHW? Do you care about the fact SHW sells low quality paints at very high prices? Is being open on Sunday the only real "added value" this company offers the consumer? Do any of you have the capability of developing a compelling position as to why this seemingly very average company with extreme insider selling is worth considering as a "buy" right now? I thought not.
Consumer Reprots is average at rating at best. SW paints are exxcellent and sell well. They smartly left Walmart for better money and their Duration paint is superb. Consumer Reports paint ratings are pathetic