Forum Archive Index - September 2000

["Peter Maiden" <pmaiden@today.com.au>]

Jesse - interesting advice you gave Brian re Home Depot in the States. 

As with a lot of the retail sector stocks over there they have not always been 
flavour of the month - and as such when sentiment turns back to companies that 
can consistently increase revenues and earnings (as the Home Depot) does you 
will be on a winner.

I did a research paper on Home Depot a few years ago (from a retailing business 
perspective) and have maintained an interest in the business since.

You may have noticed that I have a few times likened our own The Warehouse to 
Home Depot - both built up by the vision of few unlikely characters and now 
operating to much similar business models. 

Once critical mass has been achieved the relentless beating up of suppliers to 
get better margins, increasing products ranges and creating more floor space 
can only lead to increased returns.

But above all both companies have invested heavily in technology - and use that 
technology to run world class businesses. Both business are also at the same 
stage of development as to whether to take the big step into selling online. It 
would seem that both are capable but both are waiting for the right time to 
really embrace this.

This forum also had a session on 'ethical investing' and businesses social 
responsibilty. The Home Depot is centre of a movement to remove big ugly orange 
sheds from the landscape and to protect the small businesses in towns.

Just an aside to pass the time until things get better on the NZSE.

Have a good day

Peter 



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