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re: I'm seeing a bargain with this stock, what am I missing?

Posted on 3/25/13 at 1:25 pm to
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/25/13 at 1:25 pm to
exactly vol...it sucks shell does business with Iran, but you know honestly if people really dig into it all LARGE companies do some shitty stuff

1.walmart puts small towns out of business, and makes workers get on government rolls to survive instead of paying up

2.starbucks said their piece the other day on marriage

3.shell deals with iran

4.coke makes products that kill you

but what the hell are you gonna do? You gotta buy these giants if you wanna take care of yourself and your family, their returns are undeniable......so shell at 7x earnings with a monster yield might be the best play on the market today as far as im concerned
Posted by LSURussian
Member since Feb 2005
126843 posts
Posted on 3/25/13 at 1:33 pm to
quote:

walmart puts small towns out of business
lol...wut??
Posted by C
Houston
Member since Dec 2007
27813 posts
Posted on 3/25/13 at 1:33 pm to
quote:

If it's an investing call, I'm gonna disagree, long term anyway.


When i look across the world, I see a lot of very big, new finds occuring with market prices above $80/bbl. I also see a lot of instability in places with a lot of oil. To me, it wouldn't take much for supplies to really increase and really put a pinch on the big players that are moving into $50-$70/bbl positions. Shell is also getting their feet put to fire by regulators and environmental activists for their activities in the arctic; much more than other IOCs.

I really don't know how to describe Amazon. They are big into servers. Big into retail. Big into technology. Big into publishing. Looking at their P/E isn't very telling. They are a growth company. I'm not a buyer at the price they are today, but i did enjoy the ride up and sold very recently. I want to see some of their ventures become profitable before I purchase again.
This post was edited on 3/25/13 at 1:36 pm
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/25/13 at 1:36 pm to
Have you not seen the documentary on Walmart being evil?

It basically documents a small hardware store and all the surrounding businesses in the town basically being put out of business due to a new walmart opening. The whole town ends up working at walmart when one moves into small towns and the small mom and pops are screwed and cant compete.

It also detailed how walmart basically put a company on forbes most admired list out of business bc the company needed to raise the cost of the trash cans it produced bc costs went up but walmart refused to pay a higher price and it wiped out another town where that company was

Forgot the name, but great documentary....look I love walmart stock, hate the company, but as an investor I don't care......hell my biggest holding is phillip morris and it kills more people than you can imagine, but that doesnt keep altria + phillip morris from being the best performing stock of all time.....Im just here to make money

as for shell,exxon,conoco,and chevron....buy and hold them for the rest of your lives...just remember every day there is less oil on planet earth than there was when the day started.......and o ya we need it for just about everything and more and more people are driving in emerging countries like india and china.....honestly my favorite oil play besides shell is SINOPEC in china
This post was edited on 3/25/13 at 1:39 pm
Posted by LSURussian
Member since Feb 2005
126843 posts
Posted on 3/25/13 at 1:41 pm to
quote:

The whole town ends up working at walmart


Which means the town was NOT destroyed. The people just changed employers.

They left businesses or employers which were inefficient and went to work for a business that is efficient.
Posted by C
Houston
Member since Dec 2007
27813 posts
Posted on 3/25/13 at 1:41 pm to
quote:

SINOPEC in china


good luck...
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/25/13 at 1:44 pm to
sinopec just bought up a ton of land in oklahoma for pennies on the dollar from chesapeke...the chinese are loaded and theyre coming my man.....trust me i dont like their communist ways one bit.....but its hard to deny their businesses flush with cash and emerging opportunities...some right here in the US
Posted by C
Houston
Member since Dec 2007
27813 posts
Posted on 3/25/13 at 1:50 pm to
quote:

oklahoma for pennies on the dollar from chesapeke


They over-pay for shite plays or they use corporate espionage to steal other bidders information. frick them... (okay that last part wasn't about investing...)
This post was edited on 3/25/13 at 1:51 pm
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/25/13 at 1:54 pm to
sounds like you dont like them bc they flex their muscle(cash).....again I don't like the way they do business....but as an investment its hard to deny what theyre doing and the deals theyve got going down in brazil as well
Posted by C
Houston
Member since Dec 2007
27813 posts
Posted on 3/25/13 at 1:59 pm to
quote:

deals theyve got going down in brazil as well


They've got some nice plays in africa as well. Just be aware of the risks...

/thread hijack
Posted by Korkstand
Member since Nov 2003
28684 posts
Posted on 3/25/13 at 3:18 pm to
quote:

Which means the town was NOT destroyed. The people just changed employers.

They left businesses or employers which were inefficient and went to work for a business that is efficient.

The people changed employers (and get paid lower wages) because their former employers were put out of business. Retail/groceries is pretty much a zero-sum game. Every dollar Walmart takes in is a dollar lost by another business.

And Walmart is "efficient" because they have the size, power and resources to reduce their costs, mostly in the form of reduced taxes (in addition to the natural lower prices they get from suppliers). Walmart works very hard to reduce their property taxes by negotiating in exchange for all the "economic benefits" they bring, and they reduce income taxes through a variety of methods, including paying rent on their stores to pass-through companies. They even skim some sales tax money in "vendor discounts" in some states. In the meantime, they reduce property values around their stores, and then when whatever deals they've made are up and their tax burden increases, they close up shop and move to the next town, leaving an eyesore of a building and unemployed people behind.

In addition, Walmart has been known to make deals with local farmers for produce, intentionally send a truck days late to pick up the shipment, then complain about the lack of freshness (you know, because it's been sitting there for a few days) and strongarm an even lower price for the produce.

So yeah, Walmart is extremely efficient, mainly because they pass their costs onto everyone else.
Posted by Mootsman
Charlotte, NC
Member since Oct 2012
6024 posts
Posted on 3/25/13 at 6:01 pm to
I bought it at 8.96 back in October. It has dropped a good bit in value lately and I kind of bought it at a trading ceiling but I think it will go up at least to 10.00 here in the next year. It pays a 1.50 dividend. The stock is down ultimately due to the forecasted aluminum demand which is projected to be down about 15% over the next 4 years. Can't be that low right? Everyone needs aluminum.
This post was edited on 3/25/13 at 6:04 pm
Posted by hottub
Member since Dec 2012
3316 posts
Posted on 3/25/13 at 7:44 pm to
quote:

they close up shop and move to the next town


Not trying to flame or troll, but I have heard this line before but never seen Wal-Mart shut down a store and move on to the next. I have seen the older stores shut down once a Supercenter was built in the town .

Do you have any evidence of them vacating a town completely after they have exhausted the incentives?
Posted by LSURussian
Member since Feb 2005
126843 posts
Posted on 3/25/13 at 7:51 pm to
quote:

In the meantime, they reduce property values around their stores, and then when whatever deals they've made are up and their tax burden increases, they close up shop and move to the next town, leaving an eyesore of a building and unemployed people behind.

Examples, please with a link.

I'm pretty sure you're making this up. Prove me wrong.
Posted by Korkstand
Member since Nov 2003
28684 posts
Posted on 3/25/13 at 9:30 pm to
quote:

Not trying to flame or troll, but I have heard this line before but never seen Wal-Mart shut down a store and move on to the next. I have seen the older stores shut down once a Supercenter was built in the town .

Do you have any evidence of them vacating a town completely after they have exhausted the incentives?

It's pretty common knowledge and evidenced wherever you go that Walmart scatters small stores all over an area to knock out all the local stores, and then they build a couple super stores to consolidate as they shut down the smaller stores.

I'm sorry, I don't have a list of Walmarts that no longer exist, but surely anyone can see what's going on. Divide and conquer, then consolidate to make the same sales with fewer employees.

It's a brilliant strategy if you can afford it.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 3/25/13 at 9:39 pm to
quote:

I need diversification.


QQQ
Posted by LSURussian
Member since Feb 2005
126843 posts
Posted on 3/25/13 at 10:03 pm to
quote:

It's pretty common knowledge
Posted by Korkstand
Member since Nov 2003
28684 posts
Posted on 3/25/13 at 11:39 pm to
quote:

quote:

In the meantime, they reduce property values around their stores, and then when whatever deals they've made are up and their tax burden increases, they close up shop and move to the next town, leaving an eyesore of a building and unemployed people behind.
Examples, please with a link.
I'm pretty sure you're making this up. Prove me wrong.

Why? Every link has a link with a counter example. But I'll bite.

As for reduced property values... if you were going to buy one of two identical residential properties, one right next to a Walmart and one not, which would be worth more?

And now, links:

Walmart fights over 1/3 of its property assessments, and wins half the time.

Walmart always, always, always, always works out deals on property taxes with municipalities that are in desperate need of an economic boost. And abandoned Walmarts are everywhere. It's hard to repurpose a huge concrete building with no windows, though lately some towns are having luck turning them into libraries and churches and whatnot. But if you need a link to a study specifically about Walmart's practice of running stores until it becomes more profitable to abandon them in favor of building a new store with new tax breaks, I'm sorry, but you're just going to have to put two and two together like many others have and like common sense dictates.
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/26/13 at 2:23 am to
wow nice info....still love the stock even though i hate the company....10 yr avg dividend growth over 20%....I know I haven't averaged a 20% raise annually each of the last 10 years....and right now theyre abt to launch into india for the first time in the very near future as law changes are finally allowing them to go in
Posted by acgeaux129
We are BR
Member since Sep 2007
15011 posts
Posted on 3/26/13 at 2:40 am to
quote:

Banking kinda scares me at the moment


Why's that?
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