Wal-Mart Stores, Inc. (WMT)

FrankMM (< 20) Submitted: 2/06/07 8:31 AM : Start Price: $47.09 WMT Score: 43.16

tremendous buying power makes it difficult for any competitor to undercut them. dedicated, shareholder friendly management. worst case scnario: standing still, they reach 2-3% same store growth (inflation+population growth), add in 3-5% from new stores (mostly in new markets) and share buy back; and they can count eps growth of at least 10%. that alone indicates a misplaced evaluation given their size, strength and predicatbility. yet growth could easily come in higher: wmt are constantly trying new things (eg store upgrade, attempts to attract higher demographics). it would be surprising if all the initatives were to fail.
wmt is also good defensive stock, as demonstrated by its sustained price despite recent management stumbles. caveat: i am uneasy about holding wmt longer than six months because of legislative risks to their business model. i worry wmt may have appeal as a convenient whipping boy to democratic politicians eager to establish profile during the presidential campaigns.

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