Saturday, August 23, 2014
New items in the aisle at Wal Mart
Wal-Mart recently has suffered from cuts in government assistance payments after the end of the Great Recession. As a result, same store sales have suffered as low end shoppers retrench. But after three years of flat earnings, decreasing US unemployment trends, accelerating wage increases, and a tuned online strategy should return Wal Mart to earnings growth.
Moreover, Wal-Mart international continues to expand.
All of these factors should bring Wal-Mart higher over the next year.
The author of this blog is ....
Long Wal-Mart JAN 2016 $75 CALL
Short Wal-Mart JAN 2016 $77.5 CALL
....for a net credit of $1.25
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1 comment:
Wal Mart is underperforming competition in retail and the stock market in general. It is not as easy find rural towns to build stores and the urban strategy is not as profitable or easy to execute.
That said, Wal Mart still has lots of growth left abroad. Staying long in this position.
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