The first major economic act of presidential hopeful Barack Obama will be to add Hillary Clinton to the lower half of the democratic ticket. If he does not, he will be throwing caution to the wind.All indications are that he does not want to do this and hopes he will not have to -- but he may not have any choice.
It is just good business and if he is too stubborn, too arrogant, or just misguided by favorable polling numbers, he should think again. There are many Hillary supporters who will find McCain more centrist than Obama and switch parties. There will be very few, if any, to the right of McCain who will vote for Obama. They are more likely to not vote than support Obama.
Adding Hillary Clinton, in most people's eyes, will slam dunk the presidential race and if Obama does not make this tough decision, putting success in front of politics and personalities, then I am afraid all his talk of being able to stand up to special interests and take the heat in the kitchen is just that.
Today I will do so again by suggesting that it is time to get back into Home Depot (NYSE: HD) and Lowes Co (NYSE: LOW), two stocks that would be on the most hated list if there was one.
Both companies reported continued losses and most people hate the stocks right now. The prognosis for the housing market is still poor and consumers are cash-strapped and credit-restrained. However, Home Depot remains optimistic. Both companies have clean balance sheets and Home Depot is my favorite of the two because of the absence of debt and the 3.27% yield.
Home Depot closed yesterday at $26.96 and Lowes closed at $24.54. They are about 50% off their respective highs. If you think it's too early, put them on your watch list and if you are correct you can buy them cheaper. Or for you options players, perhaps doing puts would allow you to make some side money while you wait.
In my opinion, you would be buying quality enterprises cheap for the long haul that will have competitive advantages over any upstarts when the economy picks up. Even if it does not do so soon, historically, homeowners and do-it-your-selfers will lend support to the stocks at these levels.
A glimpse of my track record: Serious Money: How safe were BRK, BUD, PG, SO, & UPS?
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I do not own shares of HD or LOW today.











Reader Comments (Page 1 of 2)
8-20-2008 @ 2:43PM
agatha said...
Bullshit. He has run his race with clear and independent thinking and he can choose who he wants. Hilary would just muck it up for him.
8-19-2008 @ 5:41PM
Sheldon L said...
Agatha,
You may be partially correct but it does not negate what I wrote. He may lose by a slim margin because he is as over confident as you.
8-19-2008 @ 6:11PM
Dan said...
It would be political suicide for them both if Hillary were added to the VP ticket. Although I wouldn't mind seeing combined forces in the White House... many would see the duo as an admission of Obama to his supposed "inexperience" and Hillary to her "second place" finish in the Dem nomination. Hillary has a better chance being appointed to a position within the cabinet, but even that would most likely be turned down. Everyone sees her as a package deal with Bill... and nothing kills voter confidence like apparent power struggles within a party that can't sort out its own members' responsibilities.
There's no way about it. Hillary will never share the office with Obama. What Hillary supporters have to realize is that the only way to keep her close to the White House is to vote Obama. A Republican vote will only serve to keep both Hillary and Bill out of the WH and out of influence. It's no secret that Barack and Hillary talk frequently. And it's no secret that Hillary abhors McCain and his pro-Bush campaign.
8-19-2008 @ 6:22PM
william lindblad said...
Shell: Stay out of politics.
I am sure Obama has considered the proposed option. I am also sure that there is no way on earth that it will happen. Something about the "political" beast and strange bedfellows. I agree with you that this would be a "dream ticket", but dreams often turn into nightmares. John Qunicy and Henry Clay, although slightly different circumstances, was one that backfired. Ike kept sending Nixon to the hinterlands to keep him out of sight. How could Obama hide Hillary?
That is the gist of the problem. He would always have someone around that could upstage him at any moment. Imagine an election in the old style where the 2nd place vote getter - gets to be V.P?
Politics changes over time - trivia
The election of Senators is less than 100 years old.
Since you are doing a double bubble with HD & LOW. Take time to check out the 1st. They are still in business - Channel Lumber, Ca. (used to be nationwide)
8-19-2008 @ 6:28PM
Sheldon L said...
Dan, Bill,
You both raise some good points. I suppose Hillary would bring a lot of unwanted noise to the campaign and can make a contribution in other ways, but I stand by my claim that if she is not actively supporting the campaign Obama will lose votes.
8-19-2008 @ 6:40PM
Rosie said...
Mr. Liber has really lost his marbles! In the slim chance that Mr. Barack would pick Mrs. Clinton as his running mate, that would signified his "demise" in terms of him winning the next presidential election. Please just let her go and fade into the sunset. There are other people that if given the opportunity, will do something for this country for a real change.
8-19-2008 @ 6:58PM
SlyOne said...
Obama better put ole' Hillery at the bottom of something if you know what I mean.................. Useless, Simply Useless........ His ticket is as priceless as a ticket to an Eskimo NASCAR race.......
8-19-2008 @ 7:19PM
Chuck said...
Obama needs to drop out, let him run for President of Iraq so he can serve his Arab brothers.
Obama is a coward, McCain served this country, you can not lead a Nation you are not willing to serve, he will hand our power right over to the U.N., for those who blame everything on Busch, it was a democratic congress who passed most of the bills!
8-19-2008 @ 7:24PM
Bill said...
Two of the finest deceivers in the country...what more could the electorate want?
8-19-2008 @ 7:24PM
tenergyllc said...
Chuck,
I beg to differ with one point of fact; for 6 of the 7.75 years the republicans had control of congress.
8-19-2008 @ 7:35PM
Mark said...
Wow Chuck,it is that same form of thinking that is going to have us continue down a wrong path that Republicans seem hellbent on sending us. McCain... Please the man has more, Flip-Flops than a Denny's on a saturday morning. He has also admitted he knows little about the economy which I believe. To here this constant rhetoric about Obama being Muslim and unpatriotic is getting really old. That is the same kind of thinking by slack-jawed- yokels that allowed Bush to get in the second term(first term we know for a fact he stole, the evidence is there). Lets get something good happening for this country. Great presidents are not born they are forged by the choices they make. That is leadership you can believe in. To the Billary, Puma people. Get a Damn clue.. you think after this fiasco if Obama loses Hillary will be elected. Please... she will be fuel to stoke the republican PR machine !!! This woman is so polarizing it is disgusting.
8-19-2008 @ 9:00PM
acarponzo said...
Well all I know is his numbers are dropping in all the polls. The daily Gallup is practically dead even again. At the real-time on-line poll at http://www.bop-o-rama.com, Obama's number is growing at a much faster rate than McCain's. Hillary could have jsut as much negative effect as positive to his candidacy.
8-19-2008 @ 8:47PM
tenergyllc said...
Gosh...
No one cares about Home Depot and Lowes...opportunity or not?
They need to get Obama to do a photo op at their stores!
8-19-2008 @ 8:51PM
Mr. noitall said...
No way will Obama put Hillary on the ticket. This would be seen as a sign of weakness & desperation. And Home Depot still needs an over-haul. Maybe you can make some $ trading it but unless they make some real changes, their glory days are over.
8-19-2008 @ 10:11PM
TX CHL Instructor said...
I'm sure that Obama has better sense that to have Clinton as VP. Surely, he wants to survive his first term in office... (provided he can get elected, that is).
8-19-2008 @ 10:31PM
Thomas said...
Human-Nights:
The country needs NO more of Hillary the queen of cellulite and the pig and a dog husband in the white house. There would be three conflicts, all wanting to run the show. Best to send Hillary to Jenny or weight watchers...
Pooor Tom
8-20-2008 @ 2:21AM
scottb said...
You're wrong about everything. Hillary cannot work with Obama. She is a controller and cannot play second fiddle as a Vice President. ...and HD and LOW will continue to go down as will the housing market.
8-29-2008 @ 9:52PM
Adam said...
No way Obama should put Hillary on the ticket. She's an attack-ad pinata for the Republicans. And even if we imagine, for a moment, that her name on the ticket tips the election in her favor, she would continue to be a poisonous presence in the white house.
I think Hillary is a dangerously egotistical, morally rudderless, self-involved woman. But for exactly those reasons, I can't imagine her accepting second fiddle, even if offered. Unless she plans to assasinate him, which I wouldn't put by her.
8-20-2008 @ 7:18AM
liljoe said...
Id rather see a Clinton in office any day than this flopper, you're right he needs to run in Iraq & would win taking care of his bro's in his on country, Bill may have got a little in the oval but when he left office this country was in better shape with a surplus left & look what bush & bird hunter has done for us, wake up america.
8-20-2008 @ 7:42AM
joy8003 said...
Have any of you ever thought about how easy it would be for a VP to have the Pres. assassinated. A great way for Hillary to become president. Think about it!!!