ALWAYS BUY LOW! Just like my new habit of clipping coupons - - who doesn't like a good deal? The same is true with stocks!
I am keeping a close eye on Wal-Mart stocks! Please pretty please...go down. I am a newbie in stocks and my goal is to diversify my portfolio. I start watching Wal-Mart in March ($51 then) and with my small stash (Where to splurge extra money), I am just so desperate for the day that it will hit $47 again. Today it's $48 ! Go lower!
I don't have any formal education on stock investing, I am just winging it based on gut feel and observing the real life situation. But here are my reasons why investing in Wal-Mart stocks may be a good buy for me:
1. INCREASING CUSTOMER BASE:
With the increasing clamor on how to save money, more and more people are finding ways to extend their dollar's worth. Wal-Mart parking lot at 7am is already packed!
2. STRONG FINANCIAL STATEMENT:
Increasing revenue with a sturdy gross profit and net income performance
3. HIGH PROPENSITY TO EXPAND INTERNATIONALLY
Wal-Mart's International segment consisted of retail
operations in 14 countries and Puerto Rico. How many countries are there? Definitely, I can see Wal-Mart penetrating the European and Asian market in the next 5 years.
What's their position in the global market at this time? Reading at an article at reuters.com -The International segment consists of its wholly owned subsidiaries operating in Argentina, Brazil, Canada, Japan, Puerto Rico and the United Kingdom, its majority-owned subsidiaries operating in five countries in Central America, and in Chile and Mexico, the Company’s joint ventures in India and China and its other controlled subsidiaries in China.
4. COST CONTAINMENT:
If you have not noticed the latest Great Value logo boxes, look again.
The simplified logo on the shelves (at least in my eyes) may indicate that the company is finding ways to reduce spent on marketing /branding cost and may even indicate that they are aggressively negotiating with suppliers on keeping prices low.
This works to my advantage as this means keeping products lower. I tried clipping coupons on some product but I ended up purchasing the Great Value brand due to price difference.(See: HOW TO SAVE MONEY: CUT ON GROCERY BUDGET)
5. DIVERSIFIED SERVICES:
The financial services and products,
including money orders, wire transfers, check cashing and bill payment are increasing awareness. These new services add revenue to the company. You have to notice the lines in the kiosks ...I usually see 3-5 people in the line.
6. ONGOING EXPANSION:
When other companies are closing down, Wal-mart is continuously expanding and making their presence known. See this article on Walmart Whitby expansion
7. LABOR SUPPORT :
See article, Retail jobs are good jobs on how they plan to expand health care plans to US employees and steps to put an end to legal issues associated to settling class action suit. For me, this strongly suggests that the company's initiative to do the right thing and take care of their employees is a good strategy to keep up with changing demand versus competitor and ensure long term existence.
8. IN-STORE HEALTH CARE OPPORTUNITIES:
By now, we are aware of their retail pharmacy that offers lower copay for generic brands at retail set up. I found this article on a new business venture where they are planning to set up in-store clinics in some branches - Wal-Mart opening clinics . This only means increasing traffic on potential customers to conveniently shop at the store after their clinic visit (in addition to revenue generated for this new service)
9. INCREASING INVENTORY AND AGGRESSIVE PRODUCT DIVERSIFICATION:
In May, Wal-Mart Stores, Inc. announced that it plans to add more new products
and features to its consumer electronics area across its 3,500 stores.
10. HOME DELIVERY/ ONLINE ORDER ON MEDICATION:
I am NOT thrilled about this one as this will compete with my company, but this is a new revenue generating program for Wal-Mart that may be successful if they do it right. See $90 days supply for $10
See REUTERS for additional details on company
SHARE YOUR INVESTMENT IDEAS?
