For the past few days I have been writing about the fickle nature of our current stock market, which has been bouncing up and down, reversing direction each day. All this meandering about indicates that investors lack conviction, or at least traders lack conviction. Investors are probably doing nothing, or picking up the odd bargain here and there.
Today that bargain must have been The Home Depot (NYSE: HD) because that was the No.1 performing stock among the Dow Jones Industrial Average ($INDU). It was up 1.34% on a day when 5 out of 6 Dow components were down. It went up $0.49 to close at $37.04 in a market when everyone is sitting on the edge of their seat waiting to see what the Fed will do? Bernanke's Fed: Maybe they will and maybe they won't was my closer yesterday.
Today a stock intimately linked to housing and construction, interest rates and home mortgages, consumer spending and employment, was the big winner -- imagine that!
It was reported late today that The Home Depot Completes Sale of HD Supply, but the facts have been known for days. I reported on this earlier in the week in Serious Money: Home Depot (HD) deal is fine by me, but did not find many people agreed with me, so it must have been the silent majority bidding the stock up. Tomorrow is another day and if the pattern continues the Dow will be up -- that's of course unless it is down.
Read Chasing Value or Serious Money to find potential opportunities, and to verify my track record, as well.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He is on the advisory board of Internet start-up CircleBuilder.com.
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Reader Comments (Page 1 of 1)
8-30-2007 @ 10:46PM
DA BOSS said...
Sheldon...are you asleep?...the strength is arbitrage-related due to pending tender offer, the arbs are buying up the stock right before the tender closes...it don't say nothing about the strength of HD stock...although i happen to think it's cheap...hey, that rhymes with asleep
8-31-2007 @ 10:55AM
Sheldon L said...
Hey Boss,
Not asleep and I have written a dozen stories on HD this year including one recommending it for 2007, last december. I too think it's cheap.