Value Line Publishing‚ October 2002 In Case Number 12‚ "Value Line Publishing‚ October 2002‚" Carrie Galeotafiore presents a five-year financial forecast that shows Home Depot in an positive light. It also prepares to do the same with an analysis of Lowe’s. She supports the changes proposed by the new Home Depot CEO and that would play a role in improving Home Depot’s financial health in the home center and building industry. Galeotafiore supports her by mentioning a number of sources that
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Value Line Publishing There are two leaders for retail building-supply industry: Home Depot and Lowe’s‚ the two companies captured more than third of the total sale of the industry. Home Depot hold 22.9% market shares of the industry and Lowe’s hold 10.8% market share. Two companies are head to head competitor but focus on different market‚ Home Depot focused on large metropolitan areas and Lowe’s focused on rural area. Two companies both maintained online stores. Lowe’s has its own Web site: “Accent
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VALUE LINE PUBLISHING‚ OCTOBER 2002 Case Analysis Report Introduction The Retail Building – Supply Industry remains to be going strong despite the slow economic growth in 2002; this is due to low interest rates and strong housing market. This industry with the size of $175 billion is expected to reach $194 billion after five years. In this consolidating industry‚ two key players are dominating: Home Depot‚ which is holding 29% of the market‚ and Lowe’s that has 10.8% market share. Both wanting
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Value Line Publishing Problems: The case highlights the performance review and financial-statement forecasting decisions of a Value Line analyst for retail building-supply industry in Oct 2002. The industry is dominated by two firms: Home Depot‚ with strong operating performance and Lowe’s‚ with strong stock-market performance. The industry is highly consolidated with two major players‚ high barriers to entry and with the independent hardware stores struggling to remain competitive. This is also
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Case study: Value line publishing According to the case‚ Lowe’s management said that the growth rate of next two years would be 18% to 19%. So I prefer to use this rate as the growth rate of the first two years. The growth rate of the first two years would be 18.5%. The growth rate from 2004 to 2006 is estimated by the number of new stores‚ sq. footage and the historical sales. The following exhibit will show this result. 1997 1998 1999 2000 2001 Number of stores 477 520 576 650 744
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VALUE LINE PUBLISHING‚ OCTOBER 2002 Teaching Note This case follows the performance-review and financial-statement-forecasting decisions of a Value Line analyst for the retail-building-supply industry in October 2002. The case contrasts the strong operating performance of Home Depot with the strong stock-market performance of Lowe’s. Students examine a financial-ratio analysis for Home Depot that acts as a template to generate a comparable ratio analysis for Lowe’s. The students’ ratio
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Value Line‚ in its current form‚ was incorporated in 1982 and is the successor to substantially all of the operations of Arnold Bernhard & Co.‚ Inc. In June 2005‚ AB & Co. owned approximately 86.5% of the Company’s issued and outstanding common stock. The Company produces investment related periodical publications through its wholly owned subsidiary‚ Value Line Publishing LLC ("VLP") . VLP publishes in both print and electronic formats The Value Line Investment Survey®‚ one of the nation’s major
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Fin. 5312—100 Corporate Finance Professor Megginson February 17‚ 2013 ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Case 2: Williams‚ 2002 ------------------------------------------------- Introduction In 2001‚ the Tulsa‚ Oklahoma‚ Williams Company was in financial distress. The primarily energy-industry company was struggling with a shrinking energy trading market‚ which was
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Case study #1(Jennifer) 1. What are the causes of stress in Michael’s or Jennifer’s life? How is stress affecting Michael’s or Jennifer’s health? The causes of stress in Jennifer’s life is that Jennifer has been and going through major life changes along with daily hassles. She is experiencing a lot of pressures which could stress her out. The pressures of running her company‚ commuting for a total of two hours each day‚ the recent passing of her mother‚ and now thinking of
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(ACC4012) Bryan’s Publishing Case Question 2 BookStore Company Limited is a 100% subsidiary of Bryan’s Publishing and specializes in the publication and distribution of business text books. BookStore employs on average 50 employees and sales for financial year December 2011 exceeded $20 million. Bryan periodically sends a member of its Internal Audit Department to audit the operations of its subsidiaries. Phillip Smith is an Internal Audit staff working with Bryan’s Publishing. He previously worked
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