Lowes (NYSE:LOW) is about to release earnings. Ponder this Bear Case Scenario:
New store sales growth is slow. Heightened competition from Home Depot just compresses margins. Apparently the two do not understand what a duopoly is.
The consumer is not really spending. Interest rates will probably start to climb which is always bad for real estate and building supplies. Unemployment stays stubbornly high. People need a job before they can start renovating or building.
New products with high margins have all been introduced. The growth effect is already baked in.
Do you believe in real estate? No! Than stay away from Lowes. It’s that simple.
George Gutowski writes from a caveat emptor perspective.
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