Showing posts with label retail. Show all posts
Showing posts with label retail. Show all posts

Tuesday, December 28, 2010

Management: In 30 Years who will be King, Wal-Mart or McDonald's?

Who will be tomorrow's king?

30 years from now, will Wal-Mart still rule the bargain retail industry? McDonald's the fast food industry?

I say that only one (1) of them will: McDonald's. The answer lays in the corporate layout of their management..and the way they grow.

Monday, December 27, 2010

Quick Analysis: Home Depot (HD)

HD: Home Depot

Retail for general home contactors and do-it-yourself home repairs

Recent Range: $21/share – $40/share (Current Price: 35.09, as of close of 12/23/10)
Price/Sales (P/S) = 0.85 (0.80, Industry)
Price/Book (P/B) = 3.01 (2.56)
Gross Margin = 34.2% (33.8%)
Pre-Tax Margin = 7.0% (6.7%)
Debt/Equity Ratio = 0.51 (0.42)
Current Ratio = 1.3 (1.3)
Return on Equity = 15.9% (13.4%)
Return on Assets = 7.2% (6.6%)

Analysis: This company has widely recognizable name and has a great company concept. However, I am lukewarm on the stock.