10-17-2015, 07:15 PM
One of the reasons I joined this forum was to get some good scoops and the skinny on what people thought about individual companies. I figure people posting on this forum are pretty intelligent and self educated investors and as such, I will try to create threads such as these, and hopefully contribute when I can.
Obviously WMT is a bit polarizing, some people think the growth of the past is done for, and not worth investing in. Others don't think so at all.
I am curious what the consensus is in this worthy forum.
I think that WMT has some great infrastructure, and the ability to evolve with the times. I am pleased with the fact that mgmt is investing in its employees and its e-commerce, and I don't mind a temporary hit to EPS while they try to establish themselves as a worthy opponent to what AMZN is doing. I also like that they are paying us while they do that in the form of the dividend, in contrast to AMZN which is basically telling shareholders, "trust us while we lose a lot of money".
I think it is ironic that big bad WMT is now being punished by the street for finally paying their employees more and trying to do some good.
To me the one thing that may be a weird wrinkle is the high ownership percentage of the Waltons. So there may be a buyout or privatization in the future? Although I think it is unlikely. And Vanguard, Blackrock, and Buffett all own a piece.
Anyway, I am curious to hear people's opinions on this topic. I think they can sell underperforming bits, use the brick and mortar to help with the supply chains, and as they said, they will keep growing the little smaller stores which will hopefully penetrate the smaller communities and provide groceries etc. I think down the line the can figure it out and grow earnings, buy back shares, and keep the dividend rolling and higher growth when inflation happens and costs rise. Most importantly, I think it is likely that they will be a stream of growing dividends for years to come. More honestly, I hope they are.
What do you think?
Obviously WMT is a bit polarizing, some people think the growth of the past is done for, and not worth investing in. Others don't think so at all.
I am curious what the consensus is in this worthy forum.
I think that WMT has some great infrastructure, and the ability to evolve with the times. I am pleased with the fact that mgmt is investing in its employees and its e-commerce, and I don't mind a temporary hit to EPS while they try to establish themselves as a worthy opponent to what AMZN is doing. I also like that they are paying us while they do that in the form of the dividend, in contrast to AMZN which is basically telling shareholders, "trust us while we lose a lot of money".
I think it is ironic that big bad WMT is now being punished by the street for finally paying their employees more and trying to do some good.
To me the one thing that may be a weird wrinkle is the high ownership percentage of the Waltons. So there may be a buyout or privatization in the future? Although I think it is unlikely. And Vanguard, Blackrock, and Buffett all own a piece.
Anyway, I am curious to hear people's opinions on this topic. I think they can sell underperforming bits, use the brick and mortar to help with the supply chains, and as they said, they will keep growing the little smaller stores which will hopefully penetrate the smaller communities and provide groceries etc. I think down the line the can figure it out and grow earnings, buy back shares, and keep the dividend rolling and higher growth when inflation happens and costs rise. Most importantly, I think it is likely that they will be a stream of growing dividends for years to come. More honestly, I hope they are.
What do you think?