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Lowe's Companies Inc. Message Board

  • i_burned_the_dinner i_burned_the_dinner Feb 24, 2003 11:51 AM Flag

    Newbie here

    just starting to look at LOW. Anyone have any good facts to justify buying at this price. Or conversley any reason I shouldn't buy. thanks in advance.

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    • sorry I thought you were someone else.

    • Dear Newbie: I built up a pile of reasons why HD would be better to buy than LOW (at least by comparison).

      A few knowledgeable folks responded with facts that they feel favor LOW ...
      1. Yahoo lists PEG very slightly better for LOW.
      2. The same-store sales change over 1 quarter (if you can draw any conclusions at all from 1 quarter) favors LOW.
      (Unfortunately, unlike 1&2 above, most responses were childish attempts at disinformation.)

      Anyway, here's my last attempt to get your question answered (viz, "why should I buy LOW?")

      .......................
      Re: HD v LOW: thanks
      by: astral_tsar (36/M)
      Long-Term Sentiment: Asshole
      Msg: 17368 of 17434

      Poor "i_am_a_jackass_too", clinging bravely to one quarter of same-store sales data, wailed,

      "Which numbers"

      LOL, which numbers? which numbers? These numbers. Earnings are the same, LOW is less profitable and weaker financially (e.g. credit rating one full notch lower), and LOW costs (in price + debt per share) nearly twice as much. This is all straight from Lowe's own SEC filings, not some kind of media hype. It's dead, Jim.

      HD____________LOW
      Sales.....$59 billion ..$26 billion
      Earngs....$1.56/share...$1.73/share
      Price.....$21.50/share..$35.00/share
      Debt......$0.60/share...$5.00/share
      Cash......$1.70/share...$1.80/share
      Ret on
      Equity....19%...........19%
      Profit
      Margin....6%............5%
      PE........14............20
      Div Yld...1.1%..........0.3%
      Women Cust.45%..........45%
      Customers
      who see much
      difference...?? %.........?? %

      Why has Lowe's avoided metro areas until now?? Because they didn't want cutthroat competition against an entrenched competitor, presumably. What has changed? How is Lowe's possibly going to survive head-to-head competition? Borrow even more money? More totally unmeasured BS about customer demographics? Poor market share dressed up as an advantage?

      If LOW is growing enough to justify PE of 20, then how come PE/growth is almost 40% *higher* for Lowe's than for HD? (For anyone who feels that same store sales ("SSS") is the only number investers need to know, I'll review: for a growth stock low PEG is better for purchasers, high PEG is worse.)

    • Well that's nice. thanks

    • Here is my 2 cents (I am long). I got interested early in the year and bought at 37 on 1/6. It went to 38.45 on 1/10, had a 2.5 cent dividend on 1/15 and tumbled to a low of 34 on 1/30. It's been slowly making it's way back since then. In fact, today was the first time since 1/16 that I'm even or better. What I'm saying is check the history, the stock seems to have a swing to it. I think it's a good stock, but I probably would wait a few days to see if this is sustainable. Of course then there is the world situation....JMHO

    • Whoever you are talking to, doing your own DD is good advise. Look at today's announcement, shop the stores, etc. Good luck.

    • Do your own homework!

 
LOW
47.85-0.62(-1.28%)Jul 31 4:03 PMEDT

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