Those Stupid Analysts

According to today's Journal, Home Depot CEO Bob Nardelli has begun acquiring companies that distribute supplies to contractors according to Nardelli:

""We are going through an enormous transformation," says Mr. Nardelli. "Sometimes transformation is unsettling not only internally but also externally to Wall Street. We pose a real challenge for traditional retail analysts to understand our business model.""

Note to Nardelli, if you have managed to make a simple distribution business so complicated that professional analysts (who spend all day analyzing similar businesses) cannot understand it, you may have just come up with a really bad business model.

Timothy Burger
timothyb(at)timothyburger.com