|
|
Enron Mail |
Thanks, Carolyn. I can take a crack at the expansion questions, though
someone else may want to also take a look at it, just to keep me honest. I'll try to distribute first thing in the AM tomorrow. Best, Jeff "Vavrek, Carolyn (US - San Francisco)" <cvavrek@deloitte.com< 02/06/2001 02:01 PM To: Mark Guinney <Mark_Guinney@watsonwyatt.com<, chin@haas.berkeley.edu, sama@haas.berkeley.edu, Jeff.Dasovich@enron.com cc: Subject: HD Case: Proposed Plan I just spoke live with Mark about the case write-up. Hope the following works for everyone. I will take a shot at comparing the following for questions (a) and (b): (1) Home Depot's strategy (low margin, high turnover, high service, best quality products) with their financial ratios. (2) Home Depot's strategy with Hechinger's (upscale stores with high profit margins) by comparing their financial ratios. (Understand that I have not had the benefit of attending the last two classes, but hope to watch them on video tape before I send out my answers.) Mark has already addressed question ©, we just need to make clear in the memo the assumptions he used. Mark - perhaps you could write those up so we can drop them into the memo? The other big issue is with Home Depot's expansion strategy - should they continue to build the 9 new stores, and if so, how should they finance the expansion? They could use their line of credit or go to the equity market. Obviously with the line of credit we need to make sure that they can cover the interest expense and with the equity market we need to be careful of their depressed stock price. Can someone else volunteer to look at the expansion efforts and financing (question d)? I am going to work on this today and hope to e-mail it out by 9am tomorrow. Can we set a time on Wednesday to discuss this live? - Carolyn Carolyn M. Vavrek Manager - Human Capital Advisory Services Deloitte & Touche 50 Fremont Street San Francisco, CA 94105 phone: 415-783-5137 fax: 415-783-8760 e-mail: cvavrek@deloitte.com -----Original Message----- From: Mark Guinney [mailto:Mark_Guinney@watsonwyatt.com] Sent: Monday, February 05, 2001 5:36 PM To: Vavrek; Carolyn (US - San Francisco); chin@haas.berkeley.edu; sama@haas.berkeley.edu; Jeff.Dasovich@enron.com Subject: Home Depot Spreadsheet (revised) Jeff was kind enough to show me where to get the additional balance sheet items I needed to finish the financial ratio time sheet analysis (I missed the selected financial statement table). Please see the revised spreadsheet that has both the financial ratios and the pro forma cash flow statement for the next fiscal year. ********************************************** Mark D. Guinney, CFA Consultant Watson Wyatt Investment Consulting 345 California Street, Ste. 1400 San Francisco, CA 94104 (415) 733-4487 ph. (415) 733-4190 fax This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message and are hereby notified that any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited.
|