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Non-Tech : walmart

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To: Neil H who wrote (6)6/8/1997 2:35:00 PM
From: Leo Francis   of 25
 
I'm short Walmart, believing a PE of 22-24 is too high for a company with a maximum growth outlook of 15%. To date, it now appears they will fall short of 15% growth. Their reliance on growing internationally is filled with with a lot of high estimates which I believe they cannot fulfill. So far they have lost money internationally, even with a small 6 million profit last Q. Can investors actually think Walmart can capture more than the 7% retail market they have today? I don't think so.

I also like Walmart short, as it is great insurance for a down market. Retail stocks get killed, the first sign of trouble! LF
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