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Best of the Best: Today's Top Investment Ideas
At home with Home Depot (HD) Print E-mail Digg It!
Monday, 25 August 2008

 "Perhaps the single most attractive investment now is the nation’s third-largest importer, Home Depot (NYSE: HD)," says Mark Skousen, editor of The Hedge Fund trader Alert

"Home Depot has nearly 2,000 locations throughout the United States, Canada, Mexico and China, selling more than 40,000 products in stores that average more than 100,000 square feet. The company also offers national installation services through certified independent contractors.

"First quarter earnings were not great. And when earnings come out tomorrow, they should continue to show the effects of the slowdown in home building and renovation.

"The stock has been trending higher during the last month. That’s because some analysts -- including me -- expect the company to announce a more favorable outlook for the months ahead.

"Home Depot has invested $180 million to add more associates to the store floors during peak hours. It has hired more than 3,000 master plumbers and electricians.

"And it began giving cash rewards to associates who get top scores in product-knowledge tests. Plus, Home Depot will open at least 55 new stores this year.

"No wonder Director David Batchelder has been piling into the stock during the past few months, buying more than 3.1 million shares. That’s an investment of more than $53.5 million, indicating a high level of conviction that shares are undervalued.

"Clearly, Batchelder -- who has access to plenty of material, non-public information as a board member -- feels that that a rebound is coming sooner rather than later. And we’ll collect a 3.3% dividend yield while we wait."




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