Wal Mart--Time to go long??

M

marketsurfer

http://finance.yahoo.com/news/PowerRatings-Stock-Spotlight-tm-15306557.html?.v=2


<i>My 9-year-old son made the cogent observation several weeks ago, while in Wal-Mart, "It doesn't look like the economy is bad, this place is packed!" This led to a conversation about supply/demand, media hype, economics and the marketplace.

I was pleased to share this knowledge with him and also noticed that his observation was dead on correct. Regardless of the economic conditions, people still need to purchase goods and services. Generally, the worse things get the more consumers seek out low priced, quality necessities in a one stop type shop such as Wal-Mart.

Sam Walton had the vision back in 1962, when he launched the first Wal-Mart in Roger's Arkansas. This concept brought great wealth to the Walton family with members being listed near the top of the Forbes 400 Richest of the Rich list every year. It's not just during poor economic times that the "Super Store" discount concept is viable. Consumers seem to love the one stop ....</i>
 
I used to trade it quite often back in the day. Stock has stayed in 63 to 43 range for the past 10 years ever since it fell from 70 in the bubble and takes patience to swing but you do capture a 2% dividend while holding. The problem with WMT is it mainly rallies when the broader marker is weak and sells off when when it is strong.

Also it looks like it could be making a right should of an H&S that could take it back to 43-45.

http://finance.yahoo.com/q/bc?s=WMT&t=1y
 
Quote from volente_00:

I used to trade it quite often back in the day. Stock has stayed in 63 to 43 range for the past 10 years ever since it fell from 70 in the bubble and takes patience to swing but you do capture a 2% dividend while holding. The problem with WMT is it mainly rallies when the broader marker is weak and sells off when when it is strong.

Also it looks like it could be making a right should of an H&S that could take it back to 43-45.

http://finance.yahoo.com/q/bc?s=WMT&t=1y
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yeah, good observation. truly a stock for bad times.

surf
 
Quote from cashmoney69:

bust costco instead. It just broke out to the upside and the chart looks much better too.

or look at tgt (target)
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or as the ladies who lunch call it, tarshay.




:D
 
I sent WMT an e mail and told them I thought their stock was a short and told them why. They called me back and addressed of few of my thoughts.

Long term, I feel the vendors will be the cause any problems with sales decline. Although, same store sales are up, they should be, we have higher costs on certain items and subsequent higher retail prices. They are holding their own, currently.
 
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