Investors are trying to ░░░░░░░░ the dip in the ░░░░░░░░ and in Home Depot ░░░░░░░░ off on the wrong ░░░░░░░░ Positive let s talk ░░░░░░░░ the numbers maybe get ░░░░░░░░ fresh take from James ░░░░░░░░ joining us founder and ░░░░░░░░ investment officer mainstreet research ░░░░░░░░ Tom my studio with ░░░░░░░░ Look the options for ░░░░░░░░ Depot brought out our ░░░░░░░░ about consumers well but ░░░░░░░░ for home improvement James ░░░░░░░░ are now stable would ░░░░░░░░ it out response to ░░░░░░░░ number that seem to ░░░░░░░░ something for everyone some ░░░░░░░░ for the bears here ░░░░░░░░ also 15 billion dollar ░░░░░░░░ So that s gonna ░░░░░░░░ for the bulls Yeah ░░░░░░░░ good to see you ░░░░░░░░ took a buzz saw ░░░░░░░░ if this morning the ░░░░░░░░ and you know our ░░░░░░░░ were you know it ░░░░░░░░ a bit dramatic You ░░░░░░░░ if you re really ░░░░░░░░ and dig into those ░░░░░░░░ they beat on the ░░░░░░░░ on the bottom line ░░░░░░░░ guidance was in line ░░░░░░░░ this company that has ░░░░░░░░ suffering from lack of ░░░░░░░░ in the stores but ░░░░░░░░ metrics there as well ░░░░░░░░ percent decline last quarter ░░░░░░░░ traffic Now only for ░░░░░░░░ I would say in ░░░░░░░░ in a home improvement ░░░░░░░░ there s improvement in ░░░░░░░░ of the number so ░░░░░░░░ think is is investors ░░░░░░░░ at the numbers in ░░░░░░░░ after the the percival ░░░░░░░░ it was a two ░░░░░░░░ a half three percent ░░░░░░░░ out this morning I ░░░░░░░░ another bunch of investors ░░░░░░░░ d be one of ░░░░░░░░ coming in and it ░░░░░░░░ picking up shares here ░░░░░░░░ and there s some ░░░░░░░░ metric so related to ░░░░░░░░ for the numbers I ░░░░░░░░ be happy to share ░░░░░░░░ tell me about what ░░░░░░░░ main offset you think ░░░░░░░░ than the buyback is ░░░░░░░░ the declining sales I ░░░░░░░░ it s cost seems ░░░░░░░░ little odd for a ░░░░░░░░ get not all time ░░░░░░░░ but close to multi ░░░░░░░░ highs to didn t ░░░░░░░░ without any sales growth ░░░░░░░░ main know what s ░░░░░░░░ what s their main ░░░░░░░░ in the opposite direction ░░░░░░░░ I think them think ░░░░░░░░ main argument is is ░░░░░░░░ of the buffet call ░░░░░░░░ is a company that ░░░░░░░░ you re really break ░░░░░░░░ their numbers over the ░░░░░░░░ run is has a ░░░░░░░░ support from the professional ░░░░░░░░ or market and as ░░░░░░░░ all know the housing ░░░░░░░░ still is tight with ░░░░░░░░ rates for you have ░░░░░░░░ lot of new homes ░░░░░░░░ built And that s ░░░░░░░░ play very well to ░░░░░░░░ Depot Throughout the rest ░░░░░░░░ the sheer into next ░░░░░░░░ by proving numbers are ░░░░░░░░ Is that will continue ░░░░░░░░ sales are a bit ░░░░░░░░ here sort by lack ░░░░░░░░ if you will but ░░░░░░░░ think if you look ░░░░░░░░ in that think that ░░░░░░░░ what the equity markets ░░░░░░░░ about your maybe not ░░░░░░░░ you go big in ░░░░░░░░ More weakness in shares ░░░░░░░░ be prison the overall ░░░░░░░░ This would be a ░░░░░░░░ that we would We ░░░░░░░░ want to own it ░░░░░░░░ 20 times earnings pretty ░░░░░░░░ market valuation earnings and ░░░░░░░░ think the outlook for ░░░░░░░░ sales going forward over ░░░░░░░░ next few quarters are ░░░░░░░░ to be higher got ░░░░░░░░ How much this depends ░░░░░░░░ the backdrop for the ░░░░░░░░ economy Kind of sounds ░░░░░░░░ me What you re ░░░░░░░░ here is that it ░░░░░░░░ t have to be ░░░░░░░░ single goal the stock ░░░░░░░░ it might seem despite ░░░░░░░░ connected to housing with ░░░░░░░░ just base of the ░░░░░░░░ A commitment to essentially ░░░░░░░░ know the overall economy ░░░░░░░░ effects Home Depot It ░░░░░░░░ a cynical company in ░░░░░░░░ is almost considered a ░░░░░░░░ discretion get industrial because ░░░░░░░░ the professional contractors So ░░░░░░░░ our view is the ░░░░░░░░ the Fed is done ░░░░░░░░ know we start a ░░░░░░░░ business cycle with your ░░░░░░░░ inflation in this will ░░░░░░░░ all cyclical companies But ░░░░░░░░ I think investors here ░░░░░░░░ in a week of ░░░░░░░░ earnings coming out They ░░░░░░░░ to think of the ░░░░░░░░ most important things in ░░░░░░░░ brand which Home Depot ░░░░░░░░ balance sheet which it ░░░░░░░░ very strong and management ░░░░░░░░ The get the core ░░░░░░░░ astute management are running ░░░░░░░░ company and I think ░░░░░░░░ the consumer gets a ░░░░░░░░ fickle here in the ░░░░░░░░ few quarters Maybe it ░░░░░░░░ market volatility What have ░░░░░░░░ A consumers will continue ░░░░░░░░ back to the high ░░░░░░░░ brands where they might ░░░░░░░░ the lesser and we ░░░░░░░░ seen some of that ░░░░░░░░ out in earnings Reports ░░░░░░░░ far this quarter There ░░░░░░░░ with us a time ░░░░░░░░ Tom will you think ░░░░░░░░ Depot bouncing back What ░░░░░░░░ the trade than post ░░░░░░░░ well implied volatility collapsed ░░░░░░░░ historically what happens after ░░░░░░░░ incentive at risk has ░░░░░░░░ so take advantage of ░░░░░░░░ with the a strategy ░░░░░░░░ might Oh be a ░░░░░░░░ bit more neutral right ░░░░░░░░ but still giving yourself ░░░░░░░░ nice wide range in ░░░░░░░░ stock to trade in ░░░░░░░░ it don t maybe ░░░░░░░░ can kind of consolidate ░░░░░░░░ up of six percent ░░░░░░░░ far this year So ░░░░░░░░ at a just a ░░░░░░░░ three week wide or ░░░░░░░░ week wide put calendar ░░░░░░░░ the downside but it ░░░░░░░░ not really to the ░░░░░░░░ is right At the ░░░░░░░░ three 30 strike porcelain ░░░░░░░░ out buying and buying ░░░░░░░░ mine too because it ░░░░░░░░ gonna cost me less ░░░░░░░░ implied volatility is down ░░░░░░░░ go and after that ░░░░░░░░ monthly cycle on the ░░░░░░░░ by the three 30 ░░░░░░░░ put sell the August ░░░░░░░░ fifth weeklies That expire ░░░░░░░░ 10 days that same ░░░░░░░░ three 30 strike put ░░░░░░░░ a definite three bucks ░░░░░░░░ that Oliver but see ░░░░░░░░ on this have betrayed ░░░░░░░░ wanted to go to ░░░░░░░░ remain at or near ░░░░░░░░ 30 on this one ░░░░░░░░ I got a nice ░░░░░░░░ range between between I ░░░░░░░░ just about below three ░░░░░░░░ one on the downside ░░░░░░░░ just about three forty ░░░░░░░░ the upside So while ░░░░░░░░ s still pinpointing that ░░░░░░░░ 30 strike is have ░░░░░░░░ nice wide range for ░░░░░░░░ trading your bite at ░░░░░░░░ cheaper price because implied ░░░░░░░░ is falling and then ░░░░░░░░ have that ability to ░░░░░░░░ that short option on ░░░░░░░░ week to week basis ░░░░░░░░ credits increasing potential profitability ░░░░░░░░ also reducing the risk ░░░░░░░░ time you do that ░░░░░░░░ yeah just a short ░░░░░░░░ strategy where you re ░░░░░░░░ advantage of home deep ░░░░░░░░ maybe consolidated at or ░░░░░░░░ these levels a high ░░░░░░░░ trade It is because ░░░░░░░░ got that range and ░░░░░░░░ implied volatility does reverse ░░░░░░░░ the stock starts going ░░░░░░░░ towards three 30 in ░░░░░░░░ and volatility starts to ░░░░░░░░ That will also expand ░░░░░░░░ price of this calendar ░░░░░░░░ also so you just ░░░░░░░░ advantage of some console ░░░░░░░░ may maybe a grind ░░░░░░░░ here But you can ░░░░░░░░ part in upside to ░░░░░░░░ three hundred forty bucks ░░░░░░░░ exactly spot is basically ░░░░░░░░ it s at right ░░░░░░░░ roughly around gallery 30 ░░░░░░░░ shocker interesting trained up ░░░░░░░░ to take it I ░░░░░░░░ forward here A James ░░░░░░░░ the first earnings come ░░░░░░░░ for what many describe ░░░░░░░░ the mediterranean chipotle cobb ░░░░░░░░ av when you thank ░░░░░░░░ believer in this You ░░░░░░░░ I I love the ░░░░░░░░ model the founder of ░░░░░░░░ like running the thing ░░░░░░░░ this is a get ░░░░░░░░ to our management sort ░░░░░░░░ metric It s got ░░░░░░░░ right management is in ░░░░░░░░ You know I ip ░░░░░░░░ in June stock went ░░░░░░░░ Fifty percent now down ░░░░░░░░ percent from the high ░░░░░░░░ You know you know ░░░░░░░░ don t have any ░░░░░░░░ at least they haven ░░░░░░░░ in the past So ░░░░░░░░ s can be a ░░░░░░░░ interesting report I would ░░░░░░░░ that because it s ░░░░░░░░ has no earnings Yes ░░░░░░░░ management brand awareness yes ░░░░░░░░ on the mediterranean but ░░░░░░░░ otherwise In the balance ░░░░░░░░ sort of not really ░░░░░░░░ t cup of tea ░░░░░░░░ they may surprise here ░░░░░░░░ the upside since the ░░░░░░░░ is a long as ░░░░░░░░ percent off the high ░░░░░░░░ I would suggest investors ░░░░░░░░ with wanna be careful ░░░░░░░░ you typically by a ░░░░░░░░ percentage of of of ░░░░░░░░ trading company maybe by ░░░░░░░░ of this because of ░░░░░░░░ risk of no earnings ░░░░░░░░ we re excited to ░░░░░░░░ more frankly speaking rather ░░░░░░░░ chipotle which witches your ░░░░░░░░ brand got balance sheet ░░░░░░░░ has management but I ░░░░░░░░ very excited as the ░░░░░░░░ is to see how ░░░░░░░░ comes I think that ░░░░░░░░ after the close today ░░░░░░░░ gonna be a good ░░░░░░░░ Real quick James the ░░░░░░░░ on the balance sheet ░░░░░░░░ not your cup of ░░░░░░░░ and care to elaborate ░░░░░░░░ fast Well you know ░░░░░░░░ growth is really what ░░░░░░░░ look for Most importantly ░░░░░░░░ they don t have ░░░░░░░░ which is really nice ░░░░░░░░ see but we really ░░░░░░░░ to see her on ░░░░░░░░ end of your revenue ░░░░░░░░ were to be look ░░░░░░░░ those numbers very carefully ░░░░░░░░ know what s it ░░░░░░░░ to take for them ░░░░░░░░ get to profitability where ░░░░░░░░ margins look like so ░░░░░░░░ would be very interesting ░░░░░░░░ report to the public ░░░░░░░░ shareholders to sort of ░░░░░░░░ hey Let s look ░░░░░░░░ the curtain back let ░░░░░░░░ see what that balance ░░░░░░░░ looks like Let s ░░░░░░░░ with that income statement ░░░░░░░░ like very excited to ░░░░░░░░ that certainly an exciting ░░░░░░░░ name exciting management so ░░░░░░░░ very curious to taste ░░░░░░░░ read into that as ░░░░░░░░ market buffon Agree James ░░░░░░░░ always of great thoughts ░░░░░░░░ the company s health ░░░░░░░░ us to work out ░░░░░░░░ appreciated time