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JimVanMeerten (56.04)

Wal-Mart - Wow!



August 25, 2011 – Comments (4) | RELATED TICKERS: WMT

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Anytime a natural disaster is coming Wal-Mart always anticipates what its customers will need to recover and has those items already in transit before the storm ever hits.  They could only do that because they have one of the most complete and comprehensive inventory control and logistics systems on this planet.  This is what gives Wal-Mart the competitive advantage over all other retailers.  They know what their customers need and want and they can purchase and get it on the shelves at the lowest possible cost.  How do they keep doing this?

Barchart technical indicators:

1 - Barchart 40% short term technical

2 - Buy signal getting stronger

3 - Trend Spotter technical Hold that should flop to a Buy near 54

4 - Trading above its 20, 50 and 100 day moving average

5 - 4 new highs in the last 5 days and up 3.53% for that period

6 - Relative Strength Index is 59.26% and rising

7 - Barchart computes a technical support level at 52.59

8 - The stock recently traded at 53.37 which is above its 50 day moving average of 52.29

9 - The price is only 5.89% off its one year high vs. 19.13% off for the market as measured by the Value Line Index

Summary: Wal-Mart (WMT) will make money and the only question is how much?  The company is predicted to make increases in both sales and earnings and analysts have noted that these projection appear to be rock solid.  I'm advising a buy because the growth projections for sales and earnings are better than the growth projections for the economy as a whole and the stock is trading at a 25% discount to the P/E ratio of the market as a whole.  If it all comes together investors buying in today should see a total return between 11% - 13% annually over the next 5 years.

Jim Van Meerten is a Marketocracy Master

4 Comments – Post Your Own

#1) On August 25, 2011 at 3:58 PM, amassafortune (29.23) wrote:

Wal-Mart's push for RFID, GPS, and logistics changes to support this technological evolution has been amazing and is also a little scary.Wal-Mart told suppliers a decade ago they woud have to remain on the cutting edge of this technology if they wanted to grow with Wal-Mart. 

It's great that we can use tracking numbers to check online and see exactly the last scan or sensor-detected location of things we have on order.

The police and military applications resulting from Wal-Mart's push to develop these tech areas are making these operations safer and more efficient. And its great that someday theft will become a futile alternative to honest work as valuables become easy and cheap to track. Lost and founds could become as ancient as the rotary phone.

Just beware this technology can lead to a massive loss of privacy. Beyond chips, tags, and labels, the long-term vision is to be able to imprint the technology during the manufacturing process. Imagine a day when the transaction history of each bill in your wallet can be recovered. 

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#2) On August 25, 2011 at 4:59 PM, Varchild2008 (84.02) wrote:

So a natural disaster hits, wrecking all kinds of buildings and property, taking out electricity and so forth...

And.....*Hallelujiah!!!!*   America's Economic Worries are over!!


For everyone!

err.........or maybe just Wal-Mart?

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#3) On August 26, 2011 at 9:17 AM, JimVanMeerten (56.04) wrote:

Amassafortune - Now your wife will be able to track your every move so be careful!

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#4) On August 26, 2011 at 12:44 PM, amassafortune (29.23) wrote:

She already wonders why I walk around with bulges of pre-2000 coins in my pocket.

One great, practical application that is coming soon is the ability to perform a wall-to-wall physical inventory in seconds. For anyone who has donated periodic weekends (companies typically recruit (make mandatory) salaried workers to keep this expense down) for inventory, this will be a thing of the past. All that will be needed is a clean cut-off of transactions for a few seconds to scan everything. This sure beats closing the doors and inturrupting sales and customer service.  

Already, kids can be tracked by their backpacks, people by their cell phone location, and hunters have units they activate at their vehicle and can guide them back if they get lost in the woods. Map reading and morse code are already waning skills.

The potential is enormous, as is the potential for abuse. 

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