Wal-Mart Message Board - Msg: 28171173

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Non-Tech : Wal-Mart

WMT 101.25

-1.0%

3:58 PM EDT

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To: Hawkmoon who wrote (1146)	5/27/2012 12:59:20 AM
From: Lance Bredvold	Read Replies (1) of 1166

Meanwhile Walmart has been increasing earnings every year without missing a beat. Usually more than 10% each year while the stock price has remained rather steady until just recently. It was as high as $70 back in 1999 and has not reached that price again for all succeeding years. Earnings have gone from $1 to about $5 a share during that period. Of course it had an excessive PE of 55 at that price and time. Like Amazon's high PE today, it was impossible for the company to live up to such inflated expectations, but they lived up to more reasonable ones like 10%+ growth which are currently valued at 13 times earnings. I was quite amazed when I realized that WMT had been much more consistent than it's competitors while the price held so steady. I've been buying a bit again. Expecting the price to remain in a range of 11 to 16 times earnings but with the possibility of it's breaking out to 20 or more at almost any time. Even the dividend is up to 2.5% now. I was frightened by the people threatening this super efficient company because they wanted to protect their inefficient local retailers, but everywhere I go across the US the WalMart parking lots are full while their competitors are not. And the real estate which surrounds a new WalMart is worth huge amounts. I gather we buy relatively large plots on the edge of town and then sell off parts to competitors like McDonalds always did. Incidentally, that is really what built McDonalds more than hamburgers--real estate inflation. I don't know how much larger WalMart can become, but it is clear to me that they are still in the drivers' seat. I wish they could find a way to attract a classier clientele, but that attempt failed and we are still making a lot of money on the old lowest price formula. Bought some more at $57.55 in April. Think I'll place another order soon.

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