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Bill G | Why is home depot stock tanking? |
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bluebullettigger
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because they need a new CEO |
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simple1
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probably because home depot sucks. seriously...i went to home depot today for moving supplies and after walking around forever i finally found someone to help me and he took me to the moving boxes but when i asked about tape he pointed to another aisle, when i went to the other aisle i only found masking tape. needless to say, i went to lowes - walked in, asked someone and was directed to everything i needed in less than 3 mins. home depot's products and service suck. i'm not an expert but it makes sense. |
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-*
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Gee Bill, its a real estate bubble beneficiary. Do you think it has anything to do with a pinched consumer and a housing bubble deflating? |
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Frank Castle
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Higher Interest Rates means less houses and that means less stuff to buy at Home Depot.
Top 4 Answerer in Business & Finance. (Vote for me) |
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ganja_claus
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Your new to this?
It already happened in 2003
Back then after tanking in January to around $20 a share on pessimism that Lowe's was killing it, shares of Home Depot have risen to $32 and change. The company continued to make progress and was looking for 2003 sales growth of 9%-12% and earnings-per-diluted-share growth of 9%-14%
So why should they change it in 2006? |
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chad_nicole@sbcglobal.net
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Combination of a few things, HD has grown quickly, they've reached a point where they need to do different things to continue to grow (like buying other businesses) and cutting costs (for example all of those pesky employees that would try to help you out, which leads to the other main reason). Tons of bad press is the other reason, just search for info on their stockholder meeting or anything to do with their customer service and you'll see that nothing nice has been said about them in months. Cut hours/employees=bad service=bad press=bad stock price...of course the company's version is more like 'we're huge and people are picking on us'. |
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Few Find It
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Housing boom - done. Refi - done. Cost to borrow money for home improvements - just got more expensive on June 29th. Most of the remodels have already been done. What this country needs is another dozen Cat-5 hurricanes. Then sit back & watch the stock go through the roof.
Bad management has a tendency to hurt shares. If you have a dunce at the top, people are not confident in the direction of the company. The opposite is true of eBay; they have great management, but they're too greedy and made a stooooooooopid decision to buy Skype, a free VOiP service. Duh moment? It made the stock tank. |
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Big Bully
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I agree whith irish bastard, housing, refi, intrest rates. |
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Betty
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they have BAD customer service.. reports from CNN also state that new upper mangement has changed and that the new guy isn't on the same page as the rest of the board.. plus anything negative always causes a stock to tank.. ( the lemming effect can take place if they see others selling also)
my advice is wait till it bottoms out then catch it on the rebound... i have played a few "crash and burns" before.. * i am a stock trader from home.. you just have to remember to have an exit plan for a sell.. don't hang onto a stock if you have lost more than 10 %... cut your losses and take a tax write off... |
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