timwest
Short

Lowe's Companies LOW price chart and fundamentals

BATS:LOW   LOWES COS INC
149 2 2
Note the flatness of the revenues over the past few years and note how margins have fallen dramatically from their peak. All the while, the market cap has surged to nearly double what you might consider logical to pay for a company with almost zero growth in revenues and a weak position for profitability.

Would you pay $49 billion dollars for a company earning 2 billion a year?

Technically the chart is rolling over after a long, long, rally. Note the monthly chart above.

I already have a short recommendation on this chart on the daily time frame, and I thought it was relevant that LOW has the same lack of revenue growth as Best Buy             ( BBY             ). And all the talk about the real estate resurgence has investors all piled into this sector hoping for a profit boom to hit.

Thoughts? Comments? Next earnings due?

Tim 1:47PM EST, Jan 28, 2014 46.72 last -1.28 today or 2.65%
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Audacity618
2 years ago
I don't think investor's are too upset about slow revenue growth because they get to enjoy the $5 Billion in share repurchases Lowe's has been doing every year since 2010... However reducing the outstanding shares because revenue growth is down is not the type of strategy/company I'd like to invest in personally and yes the margins look horrible...
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timwest PRO Audacity618
2 years ago
Right re: buybacks. Buybacks aren't good when they are borrowing to finance them or are dead in the water growth-wise. The history of companies doing buybacks is littered with disasters. DELL is one that comes to mind. Very few companies meaningfully reduce their shares outstanding with buybacks. Announced buybacks are also a fraction of actual buybacks. It's easy to announce them and another thing to complete them. Always check at the end of each year how many shares are still outstanding. Thanks for the comments audacity08867 !
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