Wal mart has declining same store sales, and falling profits. That's worrying not only for Wal Mart, but for the economy in general. Keep in mind their market cap is 189 billion, so 15 billion is big, but nothing to get to wild about. Any way, the way investors make money with Wal Mart is through their dividend and stock splits. As far as trading the stock, I would call that dangerous. You're taking on a lot of risk for a small potential reward. I would like to WMT only for an investment, not a trade.
For the last 10 years wal-mart has been trading sideways. See the monthly chart. Right now we seem to be in the middle of that range.
What's on the horizon. More private label? Target (yuk yuk)upscale customers = Failure, always will be, check out other who tried. Expansion? Maybe urban areas but who wants them? Overseas already has failures. Based on empty shelves and out of stocks, merchandise turnover is suffering. The place annoys me but I shop there. Maybe the future wil be in wine sales, where they can trash another mom and pop business. Meat blows produce is second rate, I don't want private label, picking are getting slimmer and slimmer.
I shop there too. I always feel so out of place in there. Like when you drive through a bad neighborhood. I dont know,but just looking at the people in there depresses me. Sometimes if I am not in a good mood, I will go to a more expensive store, and willingly pay an extra 20%-30% just to not feel depressed by looking at those people, half of whom look like they just got out of jail(And thats the employees!). The customers look like they just got out of the crazy house. Sometimes saving that extra $100 per month or so on shopping is just not worth it.
I doubt most of the above people ever go into walmart regularly. They are usually cheaper than the others for most things. I have not endured the problem with bait and switch (like trying to explain why the ad by the item said it was 20% off but the register didn't know that with many grocers), they are clean, well-stocked, reliable, stable, fair, good return policy, huge selection, etc. Yes, sounds awful
Back when I had some money and some freedom (married now) I took a cross-country motorcycle ride, from sea to shining sea. I visited WalMarts in around 20 states, and I can say with authority that ALL their shoppers are the same. If you look at peopleofwalmart.com and are sad because you don't live in West Virginia, I can say with authority FEAR NOT. Just head down to your local wally world and take a gander. I promise you that the freakshow is as homoginized and low rent and identical from store to store and from state to state as their wares. Most walmart shoppers fall into a few basic categories; a) very fat women wearing skintight/skimpy clothing, any ethnicity. b) very skinny white women who are very pale, with bruises. Not beaten wife bruises, but "I swat the flies that land on my legs with a ball peen hammer" bruises. c) skinny white guys in very loose clothing. d) unruly kids belonging to a, b, or c who run around knocking shit off shelves or crying until mommy and daddy buy what they want e) lots and lots and lots of bad tattoos f) normal looking people from out of town who stumbled in looking for a toothbrush or deodorant and decided to blow off the rest of their day and just wander around and people watch