Home Depot (HD) does what's best for shareholders

The Home Depot, Inc.  (Public, NYSE:HD) is finally doing what's best for investors, closing stores and firing employees.  The stock is up 4% this morning and the Masters believe it can keep going, let's get into it.

The plan is to can 1,300 workers and close 15 underperforming U.S. stores as it cuts back on store expansion plans. It will cost the Depot $586 million in charges, $547 million of which will be recognized in the first quarter of fiscal 2008. It says it hopes that the revised expansion plan and store closures will improve free cash flow, provide stronger returns for the company and allow it to invest in existing stores.

That's fine, the move comes at a great time for the stock and the crappy U.S. economy:

Home Depot said its total capital spending for the current fiscal year is still projected to be about $2.3 billion, down from $3.6 billion last year.

HD is making the right moves and if Wall Street is 6 months ahead of the game, then Home Depot shares will being to recover.  Place your bets.

Disclaimer: No positions in HD.