Sunday, January 29, 2006

"Always Low Prices"
Most often than ever markets are efficiently priced, but on occasions some awesome bargains are available to participants. Take a look at WalMart (NYSE : WMT) the stock is wallowing in the bad publicity that the company has been getting, some of it quite legitimate (currently at $45). Meanwhile it gives a 1.3% dividend and the stock has not been so cheap since the early 90's. The fact is WalMart is the world's largest retailer, the largest employer in the US, has established a firm presence in China, Mexico and an aggressive strategy for expansion in new emerging markets. Is one of the fastest growing online retail sites.

The fact is WalMart will and is beginning to clean its act up. A company that has such a large impact on the global economy cannot stay aloof from all the criticism and possible legislation/regulation (aka Maryland). The company recent announced a new environmental initiative for its vendors, has a new health care plan for its workers its appointed a new social impact czar etc. I believe the company can do better - it may actually take more that some of these window dressing activities, possible even a management shake-up to fully awaken the company's conscience.

But the fact remains WMT is a good buy that the market is mispricing, so if you have money you do not need for the next 3 years this "Always Low Price" wont be there for long.
(Disclaimer : I do not own WMT today, but plan to in the next few weeks)


Post a Comment

<< Home