Walmart Inc (WMT)

(A Top Pick Sept 5/13. Up 7.35%.) This is the type of name that you are going to put in your portfolio that’s a core holding and it’s going to deliver decent returns of 7%-9%. Pays a decent dividend as well. However he is getting a little cooler on the name. Some of the healthcare costs have hampered the earnings. The cost of boosting their on-line presence is also hampering some of the earnings. Feels there is more competition coming from the dollar store segment, which is kind of a new thing, but is happening quickly. He is looking for other consumer staple names that might replace this one.

It has actually held up quite well relative to some of its peers. Thinks they will continue to gain traction given the price point that’s required for the consumer these days.

In a bad position from an economic standpoint. The lower end of the retail market is not doing well. 50% is groceries and that has very low margins. Their demographic is at the lower economic end. Same store sales have fallen in the last couple of quarters.

2.5% dividend should grow by 6% each year. Growth expectations on the stock have come off now. Consumer staples, defensive stock. It is getting expensive. They have a lot of exposure internationally and this could drive earnings growth.

It is a tough one because they have done so well at what they do. The valuation is at a point where it is okay, but they haven’t shown the ability to move the needle on the revenue or earnings scales. She sits on the sidelines on this one. She is more on the apparel side of retail.

Over the last few years, with the recession and slow recovery, customers were trading down to Dollar stores. This stock; however, continued to lag the traditional pace because it had really been hurt by lower wage income earners and the slow pace of job recovery. However, this company has staying power. Biggest retailer globally and continues to have low costs. With economies picking up this company will benefit. He is waiting for same-store sales to be more positive.

A good high quality name and has global exposure. If she is right and the US economy is improving, this company will benefit. Very competitive space but they hold their own with their good locations. (See Top Picks.)

(Top Pick Mar 7/13, Up 10.14%) This is where you want to be right now. It is cheap still. Very cheap. International Growth. Management has done a fantastic job of returning capital to shareholders.

(Top Pick March 14/13, Up 9.11%) Likes the international exposure. The valuation is starting to look a little stretched here.

(A Top Pick March 7/13. Up 8.11%.) Cheap stock. Likes this because it has actually underperformed. Just starting to break out of its 200 day with volume which is a very important indicator. Feels the smart money is gravitating towards it as they want to get into it before the analysts upgrade on the earnings.

Doesn’t like the market they sell into. This seems to be a market that is completely dominated by price. It is a volume purchaser. Likes the Costco Wholesale (COST-Q) model much better where it is a membership-based business. Has been stuck in the $73-$75 range for a while, because there is not a lot of top line growth. They’ll have to do acquisitions.

Closing unprofitable stores in emerging markets and opening more super stores in Canada. The real trouble is that they are getting squeezed by dollar stores. Amazon is impacting them also. They are struggling to grow and maintain margins.

An under performer. She really struggles with their top line. To move the needle on this is really tough. Doesn’t see a ton of expansion in the margins. Can’t see a catalyst to get the stock moving.

Suspects it will be a little higher between now and January. He likes to cut his position when it is getting like this.

Has the most revenue of all the companies in the US. They obviously do a good job and maintain their margins. It is stable and valuation is at a historical norm. If market continues to roll along it will probably do well and if it sells off, this one could hold its value better than others.