January 31, 2009 –
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RELATED TICKERS: EKDKQ
In today's market conditions of rapidly diminishing consumer confidence and corporate profits, one sell-off caught my eye this week. [more]
January 08, 2009 –
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RELATED TICKERS: WMT
... is immune from this economy, as their holiday sales show. This company has received way too much attention since the economy turned south. Yes, they have a competitive pricing edge, but investors should not be flocking to this retail trap as they have been. WMT has outperformed the S&P by 45% since the beginning of 2008. However, the company's performance does not merit this kind of premium in stock price. Walmart has an enormous footprint in the United States and continued weakness in the economy will expose WMT for the inflation-deflation risk that it truly represents. Additionally, WMT has been expanding and taking on huge debt loads. This debt, along with opening only marginally profitable stores, will crush the market value of this company, especially if this recession is a long one. [more]