Nobody is telling that HD is a bad company, all we are saying is it is overbought, I haven't seen P/E ratio of 22 for a company like HD. I have seen HD trading at P/E ratio of 8 and I was very bullish at that time. Based on the current market conditions and valuation I think HD hold a P/E ratio of ~12-14, which translates to $42.50 to $49.50
Of course with valuation of $45 HD can still pay bonus and increase the salaries for all the employees. HD is a great company, but not the valuation. I am still thinking HD will take a big haircut soon. MMs are pumping up this stock and selling their inventory of shares to the retail.
Have you been in any Home Depot store recently? I am there everyday for my contract works. I see that they are doing good business, Also, it seems that the business is picking up for most contractors, as least for everyone I know. Guaranteed, Housing recovery is for real. Be careful, Don't against the main street. 20% up by December is very likely for HD.