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dasdasdasdadas
Registered investment advisor, long/short equity, dividend investing, ETF investing
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Yesterday Wal-Mart (NYSE:WMT) reported its earnings, beat by a penny and confused everyone with its convoluted Forex laced guidance for the fourth quarter. (Call Transcript) I have been quite public in expressing my opinion that WMT would be a victim of Obama policies. In particular, I am worried about potential anti-trust efforts to break up WMT as well and the impact of the Employee Free Choice Act.

However, Andrew Ross Sorkin had a very interesting article in Tuesday’s New York Times. In the article he discusses a conversation that he had with David Boies, a prominent attorney who was hired by Washington to “bust up” Microsoft (NASDAQ:MSFT) in the 1990s.  Boies is of the opinion that Obama would not take an active antitrust stance in his first two years of office.

I agree. I think that given the state of the economy that Obama is going to be far less socialist in his policies in the early part of his administration. As a result, I am going to back off on my concerns for WMT in the near future. Though WMT will get a reprieve on the antitrust front, I expect that to be short lived. The bigger issue on the labor front could be a more immediate problem for WMT.

Benefiting WMT in the short run will be the continued trading down by consumers of all income levels. Thus, WMT could be a good investment for the first two years of Obama’s presidency but after such time the festering issues I described could begin to surface and turn WMT into a great short.

Disclosure: None 

Source: Wal-Mart May Get an Anti-Trust Reprieve, But...