Posts Tagged ‘ WMT ’

Wall Street vs. Main Street Investment Attributes

February 29, 2016
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Wall Street vs. Main Street Investment Attributes

Market leadership is constantly changing as sub-sectors come in and out of favor and particular investment attributes ebb and flow in popularity. One new theme in 2016 is the resurgence of “Main Street” type investments and overall investment exposures relative to “Wall Street” investment exposures. More simply put, mass market exposures are outperforming higher-end, upper income/luxury exposures. Within the consumer space noteworthy moves and investment shifts are underway as some of 2015’s high fliers are dramatically tumbling back down to earth. A stark example is Restoration Hardware. The stock is cut in half since the start of the year and down some 60 points, to $40, from prices above $100 just last fall. The culprit for RH is a dramatic sales and earnings miss in a promotional environment for furniture....

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Amazon and Wal-Mart; Atypical Market Rally Driven by Disintermediation and Secular Trends

October 24, 2015
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Amazon and Wal-Mart; Atypical Market Rally Driven by Disintermediation and Secular Trends

Wal-Mart recently hosted an Analyst Day to update Wall Street on current operating trends and strategy. The amount of investment needed to modernize the store base, and improve the overall customer offering is staggering. Wal-Mart will experience a second consecutive year of earnings decline in 2016. The stock took the update poorly, falling over 12% from last week’s price of $67 to $58 on Friday. The decline slashed $27b in market capitalization. Along with Wal-Mart, the retail sector got pounded, despite a rampaging market and stunning moves within large-cap tech. While the market isn’t at new highs (yet), the August sell-off is now undone, and the market trades solidly within the range of the previous 7-months (2,050-2,130). What’s going on? The current rally is atypical because it’s driven by...

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