Posted on | August 3, 2011 | Comments Off
Wal-Mart Stores, Inc. (WMT) has had its share price get hit fairly hard in recent days with the drop in the broad stock market as well as with regards to a recent report that US store traffic might be down this year. The report came from a supposed leaked memo which mentions store traffic down despite efforts to boost same store sales.
If this is true, it could mean further weak same store sales numbers from the company the next time it reports them. This could likely push the share price below $50 especially if the broad market is weak.
Anything below $50 is a good buy in my opinion. This is a long-term play and I’m completely fine with short term weakness. The dividend is sound and will continue increasing.
Watch Walmart and be ready to pick up shares on further weakness.