Wal-Mart Stores, Inc. (WMT)

Hoglum (49.71) Submitted: 1/04/07 1:26 PM : Start Price: $46.90 WMT Score: 29.30

THE BUSINESS:
Wal Mart is a good business. They sell things. Lots and lots of things. They sell stuff like for your automobile; like for your, uh, patio; for your... childrens and baby; and wristwatches too. Sometimes you can get other stuff from Wal Mart as well. You may not be familiar with Wal Mart but I went in there once. I can tell you how it works. When you fill up your baskets full of goods and services they don't let you leave until you give them money. This is why they are such a successful business. They even take credit cards, which makes it seems like everything's free.
THE FUNDAMENTALS:
Wal Mart has many ratios which can be derived from their financial statements. Very good ratios which sometimes can be expressed as percentages. Last quarter, they even did a balance sheet. I know them to be fundamentally sound because assets equaled the liabilities plus the owners equity. This reasserted my confidence that I know they don't lie when they say balance sheet. I did a free competitive moat flow analysis on the company. I used 10-15% growth margin of present influx. Then, I added a dividend derivative of future cash flows from current activities. Last in my analysis, just to have a net gross margin of resistance to failure, I gave them a 1.5% sales yield. For you laymen out there, this might sound quite complicated, but the result should speak for itself. By my calculations, the current value of Wal Mart should be $173 Trillion. This makes today's price seem relatively cheap by most standards.
THE PITCH:
You should rank Wal Mart as an "outperform". Pleeez. I dare you. It will easily beat the, uh, what were we up against here? The SP oon? The spoon will not do as good as WMT. Let's look into it a bit further. Wal Mart uses a star between "Wal" and "Mart", thus making it Wal*Mart. The SP uses an & sign, thus making it S&P. Look at your keyboard. The * is the number 8, while the & is only 7. You be the judge. Also, the yellow guy is really cool. He's your friend who walks through the store and drops the price of everything you want. Does the S&P have a mascot? NO, they're just a bunch of boring stiffs in suits. If you want to win this game, I strongly suggest you pick WMT to outperform.
Thank you.

Disclaimer: Nothing contained herein should be used in your portfolio decision making process. All information presented is the work of a madman who temporarily possessed the CAPS competitor known as "Hoglum".

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