The Home Depot (HD)
The Home Depot (HD) is the largest home improvement specialty retailer in the world. That’s the good news–and the bad news. On the positive side, they are the gorilla in the home improvement world room, with well over 2,200 locations throughout the U.S., Canada, China, and Mexico.
On the negative side, well… I’m not sure how to put this. I really can’t say much about Mexico, and I actually like the longer-term outlook for both Canada and China, but I am much less confident about the U.S. Sure, the Fed Chairman and the tax-cheat at treasury continue to assure us, but it just feels to me like they’ve got a tiger by the tail and don’t know how to let go without being eaten alive.
Then Warren Buffett tells us not to bet against the U.S. I know he’s a genius, or at least the investing equivalent, and I don’t question his integrity. Still, nothing like this has happened in his investing lifetime, and I’m not sure that even he understands what the results of this crash and bailout will be when when all is said and done.
So today, trading at $21.68, and with a dividend of 3.9%, I think Home Depot is probably the most appealing buy in the home improvement area. I just can’t see my way clear to invest now in a stock so dependent on credit, home prices, and the overall U.S. economy.