Wal-Mart Message Board - Msg: 1688017

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Non-Tech : Wal-Mart

WMT 102.95

+0.5%

3:59 PM EST

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To: Leo Francis who wrote (27)	7/1/1997 1:33:00 PM
From: Jack L. Dlugach	of 1166

I don't think it's the buyback that's supporting the stock; a lot of institutional buying is taking place. However, you are certainly correct that the stock is expensive at current levels and may very well correct. According to Business Week's synopsis in the article I mentioned, they say that Wal-Mart has a good shot at "retaining its title as the #1 growth stock" in the world and I agree with them from that respect. Most of the overseas expansion has been a success and the Cifra purchase does not indicate a problem with Mexico--on the contrary, they see Mexico as a great growth opportunity and, of course, taking a stake in Cifra is far more cost-effective than just going headlong on their own just as buying the KM stores in Canada gave Wal-Mart an instant foothold in Canada. As I said, I would not personally pay these prices for Wal-Mart stock or any other stock that has such a high p/e but for the long term I see WMT as a conservative holding; over the years, I believe that it will be a good investment with better than average growth. But the days of Wal-Mart making its investors instant millionaires is undoubtedly over.

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