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Wal-Mart roundup: Annual meeting, high-level resignations, Sell rating

  • Wal-Mart's (WMT) annual shareholder meeting commences today in Arkansas with the usual pep rally atmosphere expected.
  • Inside the company is expected to sail past votes on instituting an independent chairman and clawback disclosures, while outside some organized protests over wages are already brewing.
  • Quietly most of the execs tied to the bribery scandal in Mexico have resigned, reports the NYT. The total amount spent on the internal and external investigations into Wal-Mart's compliance with the Foreign Corrupt Practices Act is now over $500M.
  • Belus Capital initiates coverage on Wal-Mart with a Sell rating and $71 price target.
  • Wal-Mart Annual Shareholder Meeting webcast
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Comments (4)
  • Blackbeard
    , contributor
    Comments (109) | Send Message
     
    The $500M figure attached to this investigation continues to astound me. To put it in perspective, consider that the company has $45.3B in inventory on hand and 6,107 locations across the globe. Based on an average of $7.4M in inventory per location, this investigation has effectively represented the loss of 67 stores worth of inventory. Imagine how much more upset shareholders would be if 67 Wal-Mart locations had been looted with no repayment. Keep in mind that the $500M is only for the investigation, and not the effects and costs of alleged bribes themselves.
    5 Jun 2014, 08:51 AM Reply Like
  • ConservativeOutperformer
    , contributor
    Comments (600) | Send Message
     
    'Keep in mind that the $500M is only for the investigation, and not the effects and costs of alleged bribes themselves.'

     

    I'm not sure how long you've followed this bribery thing, but the effects and costs of the bribery scandal outside of what they have already paid are not additive. The people that hated Wal-Mart before just hate then even more.... so what? The bribes they paid got them a foothold in Mexico and it allowed them to build stores in a very rapid fashion.

     

    The only people talking about this are people who work in FCPA getting rich and people who read company filings that have backed out these one time charges..... Maybe they don't build stores in India as quickly because of this. Otherwise there's really no reason to get worked up.

     

    $500m sounds like a lot.... Until you realize they do $25b a year in OCF. These things happen to large corporations, it's part of the unknown when investing in public companies. Paying 1% of OCF over 2 years is almost a non event. Especially if you follow other companies like banks or pharmaceuticals.......

     

    Good luck!
    5 Jun 2014, 09:52 AM Reply Like
  • moneymorality
    , contributor
    Comments (129) | Send Message
     
    • Belus Capital initiates coverage on Wal-Mart with a Sell rating and $71 price target.

     

    Calling yourself an analyst and doing some TV interviews does not make you one. Where is the track record? What are the assets? Credentials?

     

    I think I will ask NASA if they will let me pilot a mission, because I just happen to like space, like to talk about it, and have spent plenty of time star gazing.
    5 Jun 2014, 10:50 AM Reply Like
  • John Rhodes
    , contributor
    Comments (858) | Send Message
     
    "Belus Capital initiates coverage on Wal-Mart with a Sell rating and $71 price target."

     

    That's a cRazY target. I'd back up the truck at anything near $71 for WMT.
    5 Jun 2014, 12:51 PM Reply Like
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