Wednesday, June 20, 2007

Reviewing The Home Depot Buyback History.......

time for a reality check and a look what the last gigantic buyback has done for the stock....what it has done for management is another question.......

Zeit sich mal anzusehen was im Falle von Home Deopot der letzte Aktienrückkauf gebracht hat...... es sollte klar sein was die Rückkäufe für das Management gebracht haben.....

NOVEMBER 2006 http://tinyurl.com/yocqoj

Since its share repurchase program began in 2002, the Company has repurchased 372 million, or approximately 16 percent, of its utstanding shares and spent $13.3 billion under its $17.5 billion authorization

>yes, this chart shows the period in which Home Depot has spend $13 billion in stock buybacks.......

> so sieht der Chart in der Zeitachse aus als Home Depot mal eben 13 billion $ in Aktienrückkäufe gesteckt hat.....

>that is the reward for the blockbuster performance from the former CEO.....

>hier nun die Belohnung für den ausserordentlich erfolglosen gefeuerten CEO.....

The Home Depot board has awarded him $245 million in his five years there. Yet during that time, the company's stock has slid 12 percent while shares of its archrival, Lowe's, have climbed 173 percent.

http://tinyurl.com/g6yn8

maybe they should have listen to family Ritholtz

"Home Depot has Money for Buybacks, but not Service?"

http://tinyurl.com/2hgkg3


NEW YORK, June 20 (Reuters) - Fitch Ratings on Wednesday cut Home Depot's debt rating by two notches, the third rating action against the home improvement retailer after it announced a $22.5 billion boost in share repurchases late on Tuesday.

Moody's Investors Service and Standard & Poor's on Tuesday said they expect to cut Home Depot's debt rating by several notches as a result of the massive buyback.

Home Depot said it plans to use proceeds from a sale of its supply division, cash on hand and $12 billion of additional debt to pay for the share repurchases. The company said it has agreed to sell its supply division to three private equity firms for about $10.3 billion....

Fitch cut Home Depot's rating to "A-minus," the seventh-highest investment-grade rating, from "A-plus." The outlook is negative, meaning another rating downgrade is expected over the next one to two years.

Standard & Poor's said it expects to lower Home Depot's corporate credit rating by three notches to "BBB-plus," the third-lowest investment-grade rating, from "A-plus."

Moody's Investors Service said it expects to cut Home Depot's rating by four notches to "Baa1," its third-lowest investment-grade rating, from "Aa3."

>nice timing to risk a junk rating just when a long downturn is in the bag......

>geniales Timing. Mit einem jahrelangen Abschwung vor Ausgen nochmal kurz Gefahr laufen ein Junk Rating zu bekommen......

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6 Comments:

Anonymous NC Jim said...

I wonder how many of the repurchased shares are handed back to management as options.

This appears to be a kind of "backdoor" private equity deal with management rather than outside investors buying the company - or ,at least, a piece of it.

4:22 PM  
Blogger jmf said...

Hello Jim,

here is one example from the former Home Depot CEO

The Home Depot board has awarded him $245 million in his five years there. Yet during that time, the company's stock has slid 12 percent while shares of its archrival, Lowe's, have climbed 173 percent.

http://www.nytimes.com/2006/05/24/business/24board.html?ex=1306123200&en=07a14e3eda6c5f32&ei=5088&partner=rssnyt&emc=rss

8:57 PM  
Blogger jmf said...

here the correct link

http://tinyurl.com/g6yn8

8:58 PM  
Anonymous Anonymous said...

HD's image has clearly been tarnished by the whole executive pay issue. Not to mention the poor stock performance, expanding debt load, and looming housing weakness.

The upsurge yesterday -- on news of the buyback -- looks like a chance to short...for those so inclined. A plus point is that there is skant short interest at this point -- so the risk of panicky shorts giving a boost to any uptick is small. Expect a move back to around the 50/200 day moving average. Mal sehen...

4:32 AM  
Anonymous ilanit said...

A person or legal entity, such as a company or trust fund, that meets certain net worth and income qualifications and is considered to be sufficiently sophisticated to make Orange County equity investment decisions in complex situations. Regulation D of the Securities Act of 1933 exempts accredited investors from protection under the Securities Act.

2:29 AM  
Blogger TonnyLy said...

What an interesting blog. I have been browsing the net in search of a company which could assist in buying a house. I have checked Home Depot for the customer reports on this really great site www.pissedconsumer.com. I think this company is worth being trusted. The most customers are satisfied with the services as well as terms and conditions offered by the company.

12:34 PM  

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