WMT Wal-Mart Stores

[RichKid]

Does anyone trade this stock often?

I've been driven to the US markets in a bid to find a larger array of liquid targets to short sell via fpo's (sometimes it's hard to find enough Aussie stock via local brokers to short sell or eto's are too expensive etc etc, the cost of brokerage is lower too)...I'm waiting for a broad counter-trend rally in the US markets to see how strong any test of resistance is in Wal Mart....appears to be ranging atm in a horizontal channel after peaking some time ago (note the thrust/test of September 2006 in the bar chart below), so is this a distribution pattern??...if this is what they call a defensive stock maybe it'll hold up but I prefer to only look at the chart atm....just observing and waiting for the test to give me an indication of the strength of sellers. Note the lower highs and lower lows since the all time high, price action appears to be more sideways than down though.

In Elliott Wave parlance this is most likely a Wave-4 on the monthlies. Note the breakdown from the triangle in 2004.

This is an article on WMT for those who follow fundamentals: http://articles.moneycentral.msn.com/Investing/Extra/TheEndOfTheWalMartEra.aspx

 

[metric]

Wal-Mart cancels 45 superstore projects

we were to have an ALDI open here in my home town (seqld). ALDI had negotiated some land and put in council applications. suddenly they pulled out. i wondered if they had recession on their minds..




By Al Norman


According to a list released this week, Wal-Mart Stores has abandoned a record-shattering 45 proposed projects over the past 10 months---often leaving local officials dejected and confused. Another 19 Wal-Mart projects have been killed by local citizen's groups. In total, the world's largest retailer has suffered an historic loss of 64 projects.

The list of store cancellations was compiled by Sprawl-Busters, which has maintained a database on Wal-Mart battles for more than a decade. Since June, 2007, the Arkansas-based retailer has delayed or killed its own stores in the following communities:

Aledo, IL; Arlington, WA; Belfast, ME; Bonita Springs, FL; Brooksville, FL; Chico, CA; Concord, CA; Crowley, TX; Derry, NH; Elyria, OH; Fircrest, WA; Garden Grove, CA; Gilbert, AZ; Glen Carbon, IL; Hadley, MA; Hemet, CA; Hilo, HI; Isle of Wight, VA; Knightdale, NC; Lake County, FL; Lakeland, FL; Lawrence, NJ; Lewiston, ME; Liberty, OH; Pennfield, MI; Hillsborough, NH; Kilbuck, PA; La Puenta, CA; Marietta, GA; Marysville, WA; Memphis, TN; Morganton, NC; Neptune Beach, FL; Oakley, CA; Oxford, NC; Portland, OR; Raleigh, NC; Ravalli County, MT; Rutland Charter, MI; Spooner, WI; St. Peters, MO; Sioux Falls, SD; Stoughton, WI; Sunrise, FL; Waukesha, WI;

These store withdrawals usually come with little advance notice, and even less explanation. In September, 2007, for example, when Wal-Mart suddenly folded its tent in Lancaster, Massachusetts---3 miles from the construction site of another Wal-Mart superstore---the company issued a terse, four paragraph press release which stated, "The decision is related to Wal-Mart's recently announced plans to moderate growth of U.S. supercenters as part of leveraging capital resources through a strategy designed to improve returns and sales within U.S. stores." Such dense statements left local officials scratching their heads in disbelief--sometimes following months, even years, of lobbying by the retailer to get a project approved.

Up until 10 months ago, Wal-Mart was planning to open a new store in America every 26.5 hours. But all of that changed on the morning of June 1, 2007. On that Friday morning, Wal-Mart stunned 18,000 stockholders assembled in the Bud Walton Arena on the campus of the University of Arkansas in Fayetteville. The retailer announced its growth plan for 2008--in what the New York Times described the next day as a "turning point" for the company.

In their laps, stockholders held Wal-Mart's 2007 Annual report, which said, under the heading "Future Expansion," that the company's "planned expenditures will include the construction of...265 to 270 new supercenters..." But in the weeks between sending their Annual Report to the printer, and their stockholder's meeting---Wal-Mart popped its own growth bubble.

to continue, go to link...
http://www.huffingtonpost.com/al-norman/walmart-cancels-45-super_b_94112.html?view=print

 

[Timmy]

Re: Wal-Mart cancels 45 superstore projects

we were to have an ALDI open here in my home town (seqld). ALDI had negotiated some land and put in council applications. suddenly they pulled out. i wondered if they had recession on their minds..

Just on the Aldi thing, I would have thought the possibility of recession would not necessarily be bad news for a retailer like Aldi? Not that I have much of an insight to that industry, but be interested to hear the thoughts of those who do...

 

[metric]

we already have an IGA, COLES, and a WOOLWORTHS is to open opposite of where ALDI was going. but ALDI knew that. something spooked them.

 

[dalek]

Re: Wal-Mart cancels 45 superstore projects

Just on the Aldi thing, I would have thought the possibility of recession would not necessarily be bad news for a retailer like Aldi? Not that I have much of an insight to that industry, but be interested to hear the thoughts of those who do...

Exactly right, Aldi market positioning would see recession well down their list of perceived threats. There would be any number of reasons for abandoning that particular site but not fear of the R word. They now have over 160 stores in Australia and significant distribution centre and logistic structure.
This is from a standing start in 2001. Make no mistake, they are here to stay, they know their business, shame they are not listed, they would have a slice of my cash.

 

[websman]

I've never bought Walmart, but I'm forced to shop there sometimes. Walmart opens up in small towns and puts the little guys out of business. Personally, I'm not a big fan of Walmart.

 

[RichKid]

We've seen the strong breakout from the congestion zone recently- high volume jump through resistance and then a modest, low volume pullback. There is a triangle which preceded the breakout, I didn't see it until after I'd posted my previous chart but as prices are still within a broad congestion zone (with overlapping waves) I'm just content to watch as usual- haven't much of a clue atm except that this strength is continuing in the short term.

If we continue cleanly upwards then it must have been accumulation that had been occurring over the last few years. The test of the major highs will provide some important information (if we get that high), too early to call atm, wonder if we'll retest the breakout level again around $52....

 

[RichKid]

I've never bought Walmart, but I'm forced to shop there sometimes. Walmart opens up in small towns and puts the little guys out of business. Personally, I'm not a big fan of Walmart.

We have similar issues here with our big supermarkets mate, our guys try to copy your guys, the execs often go over on tours to pick up new strategies.

Here's an article about a competitor, Costco, painted as the good guy, seems to be more socially responsible, hope it's all true: http://articles.moneycentral.msn.com/Investing/Extra/CostcoTheAntiWalMart.aspx

 

[DarrelJones]

Costco does look like a preferable alternative. The lack of resistance from communities says it all; they're more likely to enhance a community than conquer it.

Its nice to see a company taking a nice-guy, health-benefits-for-all business strategy and being still financially successful in it. Lets hope other would-be walmarts can follow suit.