You can’t make this stuff up…

File this under the "You can’t make this stuff up" category. 

Home Depot’s Board thanks Tom Ridge for making the company’s first quarter of 2003 by voting him onto its board of directors.  In February 2003, the Department of Homeland Security (led by Tom Ridge at the time) directed Americans to find some "duct tape and a secure room and a couple of gallons of water to tide you over for a day or two in the event" of a chemical attack.   I still remember the pictures of frantic shoppers at Home Depot loading up on duct tape in hopes of saving themselves from the impending chemical attack. 

This of course led to the "Duct Tape Bottom" in the stock market in March of that year.  It’s one of the all-time great panic bottoms in stock market history. 

Duct_tape_bottom

And I thought the Dick Cheney – Halliburton connection was suspect.

As my favorite comedian, Lewis Black, has said "Our leaders could have calmly stood up and told everyone ‘This is a difficult time for all of us but if we all act sensibly, we’ll get through this together’.  Instead, they yelled ‘Aaahhhhh…we’re all gonna die….buy some duct tape and plastic wrap and hide in the basement!!!!’"  It’s akin to telling schoolchildren to hide under their desks in case of a nuclear attack.

Anyway, if I were long HD, I’d reconsider holding the position.   I’ve never been a big fan of Robert "Jack Welch wanna-be" Nardelli nor Home Depot’s competitve position relative to Lowe’s.  This just solidifies my negative view on the stock.

Pass It On

1 thought on “You can’t make this stuff up…”

  1. Im doing a comp sci assignment, but for some rsaoen i get $2500 as my total value instead of $2900 shown in test case 2. My logic is as follows:sell 50 shares at 30 each. nothing is there, place in sell queue.buy 100 shares at 20. no shares available to buy at that price. place in buy queue.buy 40 shares at 40 each. buy 40 out of the 50 shares at 30 each. total value is now $1200. 10 shares at 30 each still in the sell queue.sell 50 shares at 10 each. sell 50 of these shares at 20 each. 50 shares at 20 still left in the buy queue, and total value is now $2200.buy 30 shares at 30 each. buy the last 10 in the sell queue at 30 each. total value is now $2500. What am i doing wrong here? Below is the assignment information.BackgroundStock trading is done using a so-called double auction system in which buyers and sellers can entercompetitive orders simultaneously. The orders are of the form buy m shares at $x each or sell nshares at $y each . Since the number of orders is very large, a computer program must be used tocontinuously match orders and to store unmatched orders for subsequent processing. In this project youare asked to write a Java program performing order matching according to the rules of a double auctionsystem.The double action system operates as follows. When a new buy order of $x per share arrives, it issimply stored for future use if none of the stored sell orders has an asking price lower than or equal to$x per share. If at least one of the stored sell orders has an asking price of $x per share or less, then thenew buy order is matched with the sell order with the lowest asking price. When two or more of thestored sell orders have lowest asking price, then the earliest sell order must be matched first. If someshares of the sell order with lowest asking price remain unmatched, they must be saved for futurepossible matchings. On the other hand, if some shares of the new buy order remain unmatched, theabove matching algorithm is repeated until no more matches can be made.Processing of a new sell order with an asking price of $y per share is done in a similar way. If all storedbuy orders have an offer price per share strictly lower than $y per share, then no matches can be madeand the new order is simply stored for possible future matches. Otherwise, the new sell order isrepeatedly matched with the buy order with the highest offer price until no more matches are possible,handling ties and partial matches as abovesample input 2:sell 50 shares at 30 eachbuy 100 shares at 20 eachbuy 40 shares at 40 eachsell 50 shares at 10 eachbuy 30 shares at 30 eachshares exchanged 100 total value 2900

Leave a Reply

Your email address will not be published. Required fields are marked *