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  • 12 Ready-to-Rally Stocks - Barron's [View article]
    What a disappointing line-up! As I read down the list, I kept gagging until ...oops: there was Wal-Mart (which I own). Went back to the beginning and the retch reflex started all over again.

    Now I'm wondering about the wisdom of holding Wal-Mart (WMT). Let's see:

    * stoXline's 12-mo target is $71.28 (that's 38%);
    * S&P rates it 5/5 stars with ($62.00, yep = 20%) target;
    * sales up 6.8% y-o-y;
    * unfavorable forex impact likely to reverse if USD weakens;
    * 2.3% dividend yield;
    * $8 billion cash on books;
    * retired $2.8 billion in stock in 7/31/09 qtr;
    * cash flow positive $722 million in 7/31/09 qtr; and
    * P/E lower than S&P, sector, and industry.

    Well, I think my rationale for Wal-Mart is intact. Maybe I'll check out some of the others. Can't get excited about researching anything else on the list except Microsoft (MSFT). To free up funds to buy Microsoft, I don't think I'd sell any of my Wal-Mart.

    Dave
    Aug 18 12:05 pm |Rating: 0 0 |Link to Comment
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