# Walmart - WMT



## Value (Jul 31, 2015)

Let`s talk about this one...

Lost about 33% over the course of the past year... Right now at what? 3,4% dividend?
20 billion authorized share by backs, but anticipated deduction of revenues.


Do you think this giant will bounce back?


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## jargey3000 (Jan 25, 2011)

"Ya can't beat Wal-Mart , or McDonalds"


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## HaroldCrump (Jun 10, 2009)

There could be a short term rally from this low, aka a dead cat bounce, once market realizes the world is not coming to an end.
However, I am not sure if I am bullish medium to long term.
There are fundamental changes afoot in both consumer behavior as well as labor and employment trends.

Walmart is facing changing consumer behavior patterns on one hand that are completely reverse of its traditional business model, and on the other hand, facing a lot of regulatory changes on the cost side (such as higher minimum wage, mandatory Obamacare, anti import govt policy, etc.)

They are years, if not decades, behind competitors like Amazon.
Their non US business is not doing well at all.
They had major setbacks in Germany and India, haven't been able to penetrate many emerging markets (other than China), and many other issues.

The buybacks are just financial engineering - they are raising over $5 billion every other year or so.
$5B in 2010, another $6.75B in 2013, just to list some of the bigger issues.

There are big challenges facing WMT - question is whether they will be able to innovate their way out of this situation, esp. given the regulatory and forex headwinds, and reach their previous share price highs of $90 or so.

That said, if there is continued US Fed easing into 2016, maybe QE-4, then they will do well.
Their stock can reach $90 if there is massive QE-4 i.e. something greater than $100B a month.


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## jollybear (Jun 28, 2015)

^+1.......excellent response HaroldCrump. Nice to read INTELLIGENT responses to current market/stock situations


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## fatcat (Nov 11, 2009)

just as starbucks and apple and google are examples of "next generation" companies by virtue of the quality of their products, their social policies and working conditions, wal-mart is an example of everything that is old about corporations, their employment policies are awful, the quality of their goods are low and their social positions are non-existent

they sell cheap chinese made crap for the most part (though much of isn't cheap)

their online presence is awful and floundering and has never figured out how to do it right

when i lived i seattle, they were the largest company in the world by revenues and they actually had the balls to refer all their part-time workers to the state-run health plan for low income people rather than offer them their own health plan

greedy pr###s selling sh###y products

i hope they disappear so i can go piss on their abandoned buildings


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## godblsmnymkr (Jul 15, 2015)

def could be some value here. history of competent management in a hated stock. most companies with great management will come back. look @ MCD. at all time highs recently after so much concern that they were going to lose ground to healthy alternatives. good management will usually find a way to right the ship. 
very complex dynamic going on here though that involves predicting the future of retail. pretty difficult to do so i would stay away for now until some positive signs start to show.
funny enough the recent sell off ended on its weekly support line going back years.


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