by winston » Tue Nov 24, 2015 8:19 pm
not vested
Stocks to Sell: Walmart (WMT)
Wal-Mart Stores Inc. (WMT) posted earnings that encouraged some on Wall Street lately. However, with shares still down about 30% this year, it’s premature to say the company is in recovery mode.
After all, Warren Buffett just sold about 7% of his stake in WMT stock based on the latest Berkshire Hathaway filings. And furthermore, while Walmart topped forecasts, this is coming after the company changed guidance twice already this year, cutting forecasts in October after a previous forecast reduction in August alongside poor Q2 numbers.
Who does Walmart think it is, telling us it is “raising” its full-year forecast to $4.50 to $4.65 per share from the latest forecasts of $4.40 to $4.70? Back in January, a mere nine months ago, it had forecast $4.70 to $5.05 in earnings. How is this an increase in guidance less than a year after having a higher target?
Beyond stagnant revenue and pressure on profits, Walmart is stuck in a technical downtrend after literally having its worst day ever in October with a single-day decline of about 10%.
Throw in a huge cash burn as WMT wastes $20 billion on buybacks and another $35 billion across three years on capital expenditures … and, well, you have to wonder what investors have to look forward to in the near term.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"