HD was tremendously overvalued in 2000 when Nardelli took over. If it has been going down during that time, it is only because Wall Street was getting rid of the excess value that no company merits.
Now that it is a value and if the economy does not tank, I think you can expect a 100 percent return in 3 years. Just my opinion!
The average shareholder gets it wrong most of the time. Get a Value Line and look closely at HD numbers for the past 10 years. In 2000, EPS was $1.10 and it sold for $70. In 2006, EPS is expected to be $3.10 and HD is selling for $38. Has Nardelli done nothing? Or has he grown earnings by nearly 200 percent. HD was selling for nearly 70X earnings in 2000. Who would want to buy it at that price. Now that is sells for 12X earnings, everyone complains. You should thank Nardelli for the opportunity to buy at these prices. Once Wall Street gets on his side, only a desperately slowing economy will keep this stock in the $30's.
By the way, I agree compensation by many corporate executives is excessive. Even HD seems to pay to much (even if the CEO did grow earnings by 200 percent in 5 years.)
My only problem with the market is that I am afraid the economy might tank. It just seems like many citizens may be entering a money-saving posture. Everything seems to go in cycles. Spend to much, now perhaps save to much like Japan did several years back. They say buying Hughes Supply should help HD tremendously if the economy does turns down. I hope so.