“Wal-Mart will go to $100”.
“Wal-Mart is inexpensive and it is the inexpensive alternative to Amazon.”
Oops… Jim Cramer said it.
Sorry, but that’s a just a “filler” thesis.
I’ll share real reasons for why Wal-Mart (WMT) is inexpensive through a unique perspective experienced over the past 6 months.
First, let me start with some confessions.
Now here’s why I’m long Wal-Mart and why it’s a long-term hold for my portfolio.
Why Wal-Mart is Up 26%
Amazon.
Apple.
Facebook.
Google.
These giant companies show that it’s not impossible for giants to grow.
Finally, Wal-Mart has joined the party.
Until now, Wal-Mart’s biggest problem was that of a typical brick and mortar company.
It’s relationship with customers were purely transactional.
Compare that to Amazon where the relationship is a deep and trusting friendship.
For a company like Wal-Mart:
With Amazon, the experience is drastically different.
I’m sure you’ve experienced the difference in the relationship yourself.
Also, Amazon has become so ingrained with the US population that its Amazon Basics branded products fly off the shelf.
Wal-Mart has finally wised up and understands the big picture in order to compete. It’s not just about “Everyday Low Prices”.
It’s about the relationship.
The market is slowly catching on as positive progress is being shown with the various omni-channel strategies taking place throughout the company.
Market Excitement about Wal-Mart
Wal-Mart up 26% YTD isn’t something you see often.
With Marc Lore having been granted full blessings to go all out, the company has undertaken various strategies to fully utilize their potential.
