Chips, gifts, and home improvement trips colored in the week that was.
If they build it, you will come
The two home improvement giants erected their quarterly reports this week. For Lowe's
With both companies trading at similar earnings multiples -- as Don Crotty pointed out, Home Depot is now fetching 15 times this year's projections while Lowe's is trading hands at 17 times 2005 targets -- where should you rest your hammer? Lowe's is growing faster, and will continue to do so. Even at the store level, Lowe's outdid Home Depot with healthier comps this past quarter. That's why Lowe's appears to be the better bargain, though Home Depot at 15 times earnings is also historically cheap.
So why choose? Home starts bounced back last month after a brutal March showing, though the home improvement chains have shown the mettle to grow in good times and bad. Buying both may be a good move in building out your portfolio.
Good graphics chipmakers look better
Let's hear it for NVIDIA
The shares have nearly tripled since bottoming out back in August. With NVIDIA playing a prominent role in next year's launch of the Sony
Paying what the market will bear
For Vermont Teddy Bear
It's a shame; the stock has been trading in the single digits since 1994. So the company didn't only make bears, it also attracted the investing kind. The stock closed at $5.25 on Monday when the deal was announced, so the buyout premium may come as a welcome exit strategy for investors who bought into the company. The deal is expected to close next quarter.
The headlines behind this week's stories:
Until next week, I remain,
Longtime Fool contributor Rick Munarriz never sent his wife a Vermont Teddy Bear, but he also never gave her an orange apron. He does not own shares in any of the companies in this story. The Foo l has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.