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TAKE 120: Lowe's the Play for the Housing Rebound

Monday, Dec 10, 2012 - 02:36

Dec. 10 - Loomis Sayles' Warren Koontz says Lowe's is better poised to take advantage of the housing recovery and, with its restructuring plan just starting to take hold, is his pick over rival Home Depot.

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-- do you have got a few minutes. -- -- -- -- -- Let's talk or supplement sales is certainly in this week take one play. Or at Home Depot and Lowe's. Do well okay. -- -- -- absolutely and that's why an underdog we're value managers. Aren't so what is it about it makes you think it's gotten. Well they were late. To the restructuring. Home Depot was earlier so they. And so there -- multiple points she. Of course. And we see they also have. 200 basis points lower profit margins which we think we'll start of the -- what's gonna make it. They're doing a lot of business line that you. Weather and reducing inventory by and there's but it sold about 5%. And so that's going to help the margin and of course we have a house. -- If they're doing all this stuff but when you look at people going at stores both. 00 and thanks for sales -- straight quarters so hopefully. That's it for years out of that. We'll. Home Depot is situated more in the maintenance. More expensive areas where -- Lowe's is in more big ticket remodeling so. Housing recovery. -- that. It moved more towards those. Areas I don't this -- full year profit outlook and we expect this thing from. We hope so in terms of the business. The last quarter it was a very good quarter so we're hoping that. And it accidentally. Struck some things the way the that. Well that was an issue but we feel better about it and they're doing the right things. Outlook for profits. Ad revenues generally better than that yes and you through 2015. Wheat field and even -- -- -- earning. This week -- on Friday. I brought this up there this -- providers.

TAKE 120: Lowe's the Play for the Housing Rebound

Monday, Dec 10, 2012 - 02:36

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