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Non-Tech : walmart

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To: Leo Francis who wrote (7)6/8/1997 11:18:00 PM
From: Neil H   of 25
 
Leo,

I sold my WalMart about 3 weeks ago. I also thought it was fairly valued and if a Dow decline starts it will also get hit. I still do have one retailer that I think still has about 20%+ left in it. It is Toys R US. It seems to climb every year starting about in June and peaks at YE at which the price then declines for about 1/2 a year and starts over again.

Better prospects this year too so share value should rise. They got nicked the last year on product transition in video games, which is a high profit area for the store. This year both Sony playstation and Nintendo 64 are strong. Also their superstore concept of combining Toys R Us, Kids R US and Babies R US plus food and arcade is showing well. ALso they bought out a primary competitor for the baby line that gave them if I remember right about 50 stores to add to the Babies R us store chain.

I expect price to be at 36+ by year end and would not be surprised to hit 40 if sales are good.

Best of luck

Neil
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