Jul 24, 2013|
Stock Talk - Jason Moser, Motley Fool
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Later in the show we're going to be talking about what makes Tesla such a terrific vehicle why's everybody talking about -- you learn about that later. Right now we're joined by Jason moser from the Motley Fool he's got a couple stocks -- good morning Jason. Don't good good now listen I love home people I shop there every Saturday morning not sure one on the stock why should they like the stock. Why would you like that that -- really to tell you that I would -- know it sounds like you downbeat. I know Home Depot -- -- back and -- in and they say Barry's hair. Well I think that one of the arguments actually for the company the day they certainly need customer service. Big focal point of the company's strategy here at year's and it it in the years going and -- truly clean out a customer experience in the -- Which is which is certainly resulted in. The company be able grows stale edit at night Clifford I think that. You know we always sort of hear that -- is at the housing market recovers. Watered them greatly depleted housing market recovery with it whether it is slow recovery here were drawn added -- I think I'll be over present one of those. Opportunities politically -- out in recovery. It's just so obvious. Because it's right there probably would want people only think about it. Big company. But you know we look at the refinance than -- week at the -- you're sure and in the Freddie Mac. -- -- telling is that refinance them as well Indiana's rate go up. Anything they want the logical that the polish and added that people finish re funny there -- eating more. And these in these thirty year fixed loan and played there on they're active they put for a little while longer and I think it once that happened. You know and we need more home renovations more on the improvement crop up project take place and that obviously were our own people shine. An opening -- look at home people or one that won a logical question the -- that why don't people not load right yeah I think really the best way to look at is that. Not a big load necessarily bad on people when you look at them eat though it is more than twice as big as well. It maintained that much better margin line thanks to the game. Which allowed the company to be more profitable in the more on each resource to grow the company did again like -- like we talked about in the beginning. When you say they're twice. When you say that twice as large as that total revenue. But it in -- get he'd be generated significantly higher amount of they will. As well. Yeah a bit more stories -- Clarksburg and aren't yet more stores. Well -- -- -- that they can have a bigger sport -- and partly lows and it had a little back on their strategy opening or the world would try to cut. You know keep anything about it war if it's only been sort of bet that. Competition between can be almost make you both coexist. But Home Depot had through their deal into their focus and a reservist but he been able to. Did generate. Been a bigger footprint that -- they'll actually. Jason I didn't notice this morning that lumber futures are up as well that's got to be good for both Lowe's and Home Depot -- that mean I think. The article yet that that's a great point you know between lumber for housing start. -- lumber for home renovation project also worked I think absolutely that is that the harbor try to think of things to come from companies like. All right so Home Depot you'll like it to eighty box. I do have a fair value were a target on. Well I don't really look at it is that our people we will look at that to the great company did you combine hole for a long time eight point but I'm turning the air right. Because that the one point 9% dividend you'll now but don't -- it it's been as. Open that people chasing after the you'll interest rates below that income people stop right speed in check it out and did 240%. Gainer here the last five years and I think it's I think it's the end. But to do at least 50% annually over the course of the next. All right now is your next Dick McCormick -- McKesson. McCormick okay yeah and Casey is the symbol four to 72 dollar stock I'm not familiar with the. Well let me ask you this that you had any. -- in your entry at home tons okay what do you are definitely a whole. Cloning. That yeah guy and say hey I love. Curry out -- -- big -- exactly curry powder Berkeley every other spiteful and done it irritate a couple of years ago actually McCormick at their factory when -- What are the production Packard that your hunt valley Maryland but hour -- -- you. And I had the opportunity to go. Visit that factory public -- with management there it was just phenomenal experience coming from the perspective of the monitor the lot cooking at home. I got a Big Dig out of the McCormick is one these companies that. If blog under the radar when you think about it yet have a position in virtually every household in America. Right and that that's that's great you know itself. Another one of the really track department of companies don't think people know that. Is it industrial segment. It has relationships with these beat restaurant names like Yum! Brands for example where they -- a lot of despite the four for the air. So you know they'd make a significant amount of money from those deals and they can deal with the lower margin but they certainly are very reliable and very predictable which is night. What do they -- their dividend to aid they're they're not paying -- pay about a dollar 36 but their make and three bucks a share. They -- you know I think that over time here we will beat them. Wrote that dividend it speak out by the same token it's still relatively small companies less than ten billion dollars. Being recently made another acquisition here in China. Little company called upon Asia Pacific content to gain more market share in Asia. And it -- is kind of Islamic world that footprint. They are going to raise that -- they're gonna continue returning cash to shareholders. The share buyback and dividend raises. I think he really are still trying to grow the company slowly methodically that they don't want. Over promised and under deliver. Got it got what Jason -- great job thank you very much for your stock -- That's adjacent moser Motley Fool. There's two picks were McCormick and that's straighten it symbol for -- and Casey it's trading at 72 dollars a share he'll select Home Depot HD. That's tree for about ED bucks this year Susan word as your husband suffers -- -- man Jersey Home Depot. You know what we're a little weird we live equally distant to both know I think he tends to go to Lowe's -- -- -- mother tends to get gift cards for -- felt that. You know what I mean I'm not partial to either a like -- And what I Uganda your Home Depot manager primarily Home Depot and old depot just because of proximity you know like I can go to Natick and go to The Home Depot Natick -- go to the one down a reward millions and their lows that there's -- -- -- their troop. -- it like it's close it's on the way to beaches. And also the guy that account I do to -- It seems like everywhere there's a Home Depot there's -- a few miles away means there's one of Foxborough right next couple of live and wild Saturday's wildly crazy. Wild and crazy -- Hate when we return Susan powers is gonna share with you ten reasons that you might want to avoid retirement that's next on the financial exchange.