Walmart Inc (WMT)

(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.

A fantastic company. Came out with earnings that were not that great a while ago. In the soft economy of the US, earnings are suffering a little bit. He still likes the company. If you are looking for this kind of stock, he would go for Dollarama (DOL-T).

Problem with Wal-Mart, the world’s biggest retailer, is that their main target customer is the most US vulnerable consumer. Other retailers cater to other parts of the retail market such as dollar stores and those above Wal-Mart.

The downturn in the stock price is simply to do with economic issues and the economic outlook. Earnings and revenue growth are slowing down. They are suffering because the demo graphic of their largest customer is not doing as well.

It was just announced that the company is cutting orders as unsold merchandise piles up in the US. US economy is not exactly swimming along at a good pace. This company is probably the premier company globally at managing inventory. If they have made a bad bet on inventory, there are others who are even worse.

The consumer has been challenged. Valuation is neither super high, nor super low. The stock could do well going forward but not necessarily so.

Extremely big company. Thinks the prospects for organic growth are fairly low. Top line growth may be 2%-3% so it really is a cost cutting story. Making sure they have the right footprints and that they are in the right markets and have brand relevancy. Not his favourite name as he thinks it is fairly valued at current levels. Would prefer Target (TGT-N).

Caller asked what to Short. He has a number of shorts. Wal-Mart because of weak numbers and free cash flow below earnings due to depreciation.