4/24/2012
WALMART STORES (NYSE:WMT)
I've talked about Walmart before, this update only pertains to the recent stock dip due to corruption charges. My original thoughts can be found via the link below the fold.
Price at initial write up 54.26
Price at revisit 59.54 $
http://imacapitalist.blogspot.com/2010/09/wal-mart-stores-inc-nysewmt.html#more
Valuation Ratios
Price/Earnings (TTM) . . . . .13.11x
Price/Sales (TTM) . . . . . . . 0.45x
Price/Book (MRQ) . . . . . . . 2.85x
Price/Cash Flow (TTM) . . . .8.24
Held by institutions . . . . . . 30.3
MarketCap 202.5B
Benjamim . . . . . . . . .4.8/5: This sector will remain strong, earnings for WMT continue to improve year over year.
Davison . . . . . . . . . 4/5: Near term price dip under fair value by 10%.
WALMART STORES (NYSE:WMT)
I've talked about Walmart before, this update only pertains to the recent stock dip due to corruption charges. My original thoughts can be found via the link below the fold.
Price at initial write up 54.26
Price at revisit 59.54 $
http://imacapitalist.blogspot.com/2010/09/wal-mart-stores-inc-nysewmt.html#more
Valuation Ratios
Price/Earnings (TTM) . . . . .13.11x
Price/Sales (TTM) . . . . . . . 0.45x
Price/Book (MRQ) . . . . . . . 2.85x
Price/Cash Flow (TTM) . . . .8.24
Held by institutions . . . . . . 30.3
MarketCap 202.5B
Benjamim . . . . . . . . .4.8/5: This sector will remain strong, earnings for WMT continue to improve year over year.
Davison . . . . . . . . . 4/5: Near term price dip under fair value by 10%.
Growth isn't quite where I'd want it, but I still consider this a buying opportunity. It's stable, nothing supper sexy. They're not reinventing the wheel, just bringing it to new places at a novel price point. I hope the slide continues from yesterday, I'm a 2% buyer below the closing price on 4/25 (<59.54) and I'd pick up as much as another 2.5 to 5% if it somehow magically dropped 54.50 since these corruption situations will not materially affect the company and even if someone goes to jail over it it may not be for another 5-10 years. If you picked it up around first consideration, obviously keep it but I wouldn't necessarily add on to it as there's no reason for Walmart to be more than 5% of your long term portfolio. And if you're thinking that it should, consider KO, GLD, MO, & BUD instead.
Due diligence alternatives to WMT include CBD, BSI, ANDE, CASY.
On the other hand if you're a gambler just flag this as an opportunity and pick it up in 0.25% to 1% blocks ride it down, hope the rest of the market doesn't crash on Euro news and cash in when WMT eventually pops back to $72+ for a nice little gain. But then you'd be a trader and not an investor and rolling dice isn't a sound strategy.
Happy trading!
Happy trading!