Wal-Mart Message Board - Msg: 22127979

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Non-Tech : Wal-Mart

WMT 101.04

-1.2%

2:30 PM EDT

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To: Tarek Tabsh who wrote (1103)	2/2/2006 9:06:48 PM
From: Lance Bredvold	Read Replies (1) of 1166

You surprised me with that plan, and I continue to hold a secondary position in WMT since prior to 1990. But looking at the history and growth in earnings, I'm thinking you might be looking at a good purchase point. I'm not terribly tempted by a PE still around 20 though it is much improved from what it was in 2000, of course. And the company seems to keep pushing ahead despite the obstacles placed in it's way. Return on shareholder's equity still riding around 20% and earnings throughout the last 5 years have shown consistent growth in the mid teens. Yes, I think I might even put in an order to buy a bit lower than $46 even though my general idea had been to sell out prior to hearing your proposition. I don't expect any huge run in the stock, but also I don't expect it is very vulnerable to most setbacks. Recession? They did fine during the short one in 2001 and probably would be relatively safe again. Inflation I think they can handle better than most given their tight controls. And now with over 6 years of declining or at least steady price while earnings continued to grow does make the company look much more attractive than in the recent past. I'm glad you suggested that it might be time to buy. Who owns their real estate, by the way? Do they make money on the land which increases in value around their stores? I see the WalMart in my small city is adding a grocery store on the side, but I did not notice if they had to buy that land. They always have extra parking space which becomes pretty valuable I think. I accidentally wound up driving through Bentonville enroute another destination last week and was amazed by the development in that corner of Arkansas. My old atlas did not even show large highways up there, but there is a new freeway and the town is full of huge WalMart buildings. It was a weekend and I did not poke around much though. Best, L.

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