Tuesday, August 15, 2006

Poker and Earnings

I was fortunate enough to play against some super fishy players tonight, but I was even more fortunate not to get sucked out on too badly. Finished the night up two and a half racks. Hopefully, I'm back on the winning track again.

So, about an hour ago, Home Depot (HD) announced its Q2 earnings. On first glance I think it's neutral at worst. They beat expectations by a penny coming in with a 93c EPS. They beat on revenues by half a billion dollars. My main concern is that they guided to the low end of their previously announced earnings range going forward. That said, the shares are trading at a very cheap multiple (around 11x trailing earnings). If the stock does not move strongly to the upside, I will be filling the third and final part of the position. I will once again reiterate: the stock is cheap.

Still waiting on American Eagle Outfitters (AEOS) earnings, which are due out within a couple of hours. I guess I'll have to read about it tomorrow. It's late, and it is most certainly past my bedtime.

1 comment:

Anonymous said...

wow, that's WAY late. I was dead tired and went to bed at 12am.

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