Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan.
Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Tuesday, May 16, 2006
Home Depot Trojan Horse
Home Depot (NYSE:HD) just reported some excellent numbers. The potential trojan horse is the huge increase in long term debt. Interest expense is up 300% in the recent quarter. Retail earnings may be volatile and leverage has been increased.