I traded out of WMT, as I heard the talking heads on CNBC Wed. morning give their negative opinions (one guy threw it out as a short idea), as well as mentioning the B of A downgrade/expectation of low end of the range. I don't trade on such "talk" all that often, but I had a modest ST gain in place, and the stock was trading up despite the negative news - the positive market tone that day didn't hurt.
I am now getting interested in BUD at these levels, that seems to me like a better bet on a reversion to mean basis. The PE multiple is at or near the low end on an historical basis. The period the stock is entering is seasonally strong; if the summer is warmer than normal, that would bode well for the stock (of course, the inverse could also happen).
I just can't get too excited about WMT, the shame factor is there for me, as well. I went into a store the other day, the retail experience there doesn't set me on fire. We, as a family, generally shop TGT for the comparable essentials. They (WMT) keep repeating, in their releases on comps., how groceries are the biggest part of the increase in SS comps.; as we've noted, this is the lower margin part of the business, and that can't help the bottom line. |
