Monday, May 19, 2008

Lowes Skips The Explanation

Lowes (LOW) announced poor results early Monday morning. At this stage of the recession no one is surprised that a building supplies company that is dependent on the state of the housing market did not make a lot of money.

Robert A. Niblock, Lowe's chairman and CEO. Did say "The generally poor economic outlook, including well-known housing pressures, rising food and fuel prices and a more negative employment picture eroded consumer confidence and impacted discretionary purchases for the home.”

Niblock then continued. "Fiscal 2008 will be a challenging year on many fronts, but we remain focused on what we can control and will continue managing for long-term success and pursuing opportunities as they arise in the current environment."

That’s it. Sorry the economy stinks and we do not have to explain anything more so that’s all we are going to say. The investor understands that it’s rough out there so you do not have to sugar coat it. But Full Disclosure this is not. We need to understand the thinking from the executive to determine if this is a stock to keep.