Two Winners on Housing's Rise or Fall
This column was originally published on RealMoney
on April 3 at 12:26 p.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney,
If you sit down with Robert Niblock, who runs Lowe's (LOW), he would tell you that it really doesn't matter if homes sell or not. If they don't, the people who currently live in them remodel. If they do, the new people remodel. It is a win either way.
But the truth has never mattered. People will sell Lowe's when housing is "bad," meaning that houses aren't selling and they buy it when housing's moving.
My take is that Lowe's is good, but the levered way to play this is Sears (SHLD). I say that because Sears has made great strides in clothing but not in housing-related, so if housing pops, you've got a real horse on your hands.People want to buy Home Depot (HD) off this but I say, way too early. You don't want to be involved with a situation where the new management hasn't gotten its arms around the stores yet. Anyway, I like this group on any lift because it has been pounded. I pulled up with Bob Niblock when Lowe's was at $34 and it was business as usual. Now, a couple of points lower and I think you'll have a good one. But Sears should be a great one, particularly if it takes out the high because there are lots of technicians who home in on the stock. Random musings: Looks like Anthony Noto's call on Google (GOOG) was an impact one. I like that, 'cause he's real good.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV