The research that I have found on Wal-Mart has confused me about from there growth. I know for fact they are testing a new market right now which is the small convenient stores like walgreens and cvs. However the super center stores are becoming less relevant today because of e-commerce which is why they spent over 400 million dollars to ramp up there e-commerce business, but they're 20 years behind right now. Personally I'm really not sold on the e-commerce business plan that they came up with. Also they have to much management right now an not enough associates. Honestly I think they aren't expanding the Sams club's. I think major cities could have 2-4 Sams clubs. Instead of 1-2 depending the city. In my town we only have 1 and we could use another.
They are the leading retailer while being the epitome of a small family business that made it big.
timwest
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If you look at a Value Line of Walmart's growth over the decades you will see that they have found ways to grow as much as possible and still make a profit. We will collectively not understand every aspect of Walmart's profit, but at some point you just put a value on the ability of the company to extract a profit from the sales that it generates. Sorry if that sounds simplistic, but at the heart of it all, Walmart is a cash flow machine and the hard part is putting a value on it compared to all other cash flow machines. Kohl's, T-Bonds, Gold Mining Companies, Oil Companies, etc... They are all competing for our investment dollars and attention. I like to figure out how Portfolio Managers are doing their job and then try to front run them as much as possible. Find out what they buy and when, and you have a powerful, profitable system in your hands. My "key hidden levels" reveals where Portfolio Managers are active in a market and thus gives us an edge to know where they will be buying or selling. We clearly want to be buying just ahead or just after they are buying and we want to be selling just before or just after they are selling if we want to have low-drawdowns in our equity from our entry levels.
timwest
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Better than Value Line, TradingView has great long term fundamental charts.
I will post a long term "Sales Per Share" graph of Walmart and you can see how well they have done and are doing.
tradingformoney
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Your dead on with wal mart wanting investment dollars right now. As in hoping they can get money for their company at a high price to sell a portion of their company for more then what its worth an then buy it back cheaper then what they sold it for. Which is the biggest thing in my book to understand how the stock market works. No meaning being or thinking as an investor but how yourself as the individual who owns the company to grow the company and to be able to get the company back. ( theory atleast or hostile take over). That would be my guess as being a portfolio manager. I wanted to become a security analyst but i ended up studying accounting instead because of how wall street is a make it or break it career.
I like Wal-Mart as a company, I think they have more growth opportunity then target shopko etc but ( this is in hypothetical) if amazon got bought out by google I would put google as a whole above Wal-mart for two factors.
1). there cash would be diversified ( like berkshire).
2). Silicon valley (innovation)
The thing I quite don't fully understand is how does a company operate with a negative cash flow for over a 2-3 year period and still be in business. While being publicly owned at the same time.
Wal Mart did have a negative cash flow for some time, at one point.