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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (22352)	1/13/2006 2:45:01 PM
From: Bob Rudd	Read Replies (2) of 78715

WMT: Today's news from Maryland mandating healthcare was unsettling so I did a bit of research. Merrill takes the difference between what WMT says it now spends and what the Maryland law will require and estimates that if this mandate went nationwide it would impact WMT shares by 3-4 cents/Sh. I would estimate that the likelihood of that would be about 20%, or similarly, that 20% of the country would likely adapt a similar approach. Taking 20% of the mid-range gives .007/Sh expected value of the impact. While there's near term headline risk as this spreads [30 states have similar proposals], it doesn't kill or even seriously damage WMT's fundamentals....it may lead to an additional 'buying opportunities' for those not all in. I'll likely hold on and look to add if it revisits the lows...the remerchendising and other initiatives are more impactful than this. OT: This approach to healthcare, mandating coverage levels, has a bit of a socialist ring to it. If it spreads, it could have broader implications on many fronts...none of them pleasing to shareholders of public companies.

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