Monday, February 2, 2009

Wal Mart at 52 Week Low

Today, Wal Mart was trading at a new fifty two week low of $46.25. The price is around thirteen times this years earnings. Share have dropped significantly from $63 last September. The shares have been hit just like all others with worries of a recession and less consumer spending.

Wal Mart is a defensive stock in my opinion rather than a retail stock. The company will not be phased by the economic worries as much as any other retailer. Customers who cut back on spending may even shop at Wal Mart more than they had in the past.

The company continues to raise its dividend every year. The shares below $50 is a gift. Shares will bounce back and will be trading around $65 by September 2009.

1 comment:

  1. Good article and very valuable information. Keep it up!

    ReplyDelete