I do not believe it is a total cannibalization play, but I have to remind people that a week ago this was supposed to be Amazon vs. Wal-Mart (WMT), with the latter supposed to be taking it to Amazon. The truth is that Amazon is a fulfillment play and a cultural play that Wal-Mart can't challenge on price.

Stock buybacks, another type of investor reward, also are at an all-time low since S&P started keeping tabs on them in 1998's first quarter. For the second quarter this year (the most recent data available), S&P 500 companies spent only $24.2 billion to repurchase their shares, down 72% from $87.9 billion in April-June 2008, and an 86% drop from the record $172 billion spent on buybacks during 2007's third quarter. "At the height of the buyback bonanza," said Silverblatt, "companies spent 180% more on stock repurchases than they did on dividends. Now buyback spending is just half that of dividends." On the bright side, several big companies continued repurchasing their shares. ExxonMobil (XOM) spent the most, $5.2 billion. Wal-Mart (WMT) was second, dishing out $1.9 billion. Other notables were Family Dollar Stores (FDO), Staples (SPLS) and Medco Health Solutions (MHS).

Proven Earner

One myth is that older Americans are much more interested in shedding furniture and housewares than in buying them because most are empty-nesters. The reality: Older consumers account for more than 40% of the money spent on new household furnishings and equipment in the U.S. In part, this is because two-thirds of the owners of second homes are at least 50 years old, and need couches, tables and cutlery for those getaway places. In addition, one in six families headed by a person over 50 has a member under 18, as more people have children at later ages. At the same time, the recession undoubtedly is forcing more 25-year-olds and 40-year-old single parents to rethink the charms of their parents' homestead. Bottom line: Older consumers will keep trudging off to Bed Bath & Beyond (BBBY), Target (TGT), Wal-Mart Stores (WMT) and Ikea for years.

There are those who accuse retail giant Wal-Mart (WMT) of being the ultimate mom-and-pop store predator. I consider Wal-Mart to be the ultimate empowerment tool for consumers. The retailer gives millions of people around the globe access to low price goods — and by extension, creates wealth via the low-price savings dividend we all benefit from. Wal-Mart also provides millions of jobs for people around the globe.

I think Wal-Mart's real virtue lies in the fact that the company continues making solid profits. By selling people what they want, at the price they want — and by making profits for their shareholders — Wal-Mart has become of the most brilliant examples of capitalism the world has ever seen.

I am seeing Wal-Mart (WMT) do nothing at all, even when things aren't so hot, as they company admitted last night.

I can go there for everything

Q: Give us an example of how this type of market impacts an individual stock.

A: Wal-Mart [WMT] is a perfect example. In 2000 it was trading at 45 times earnings, and it earned $1.25 a share. Fast-forward to today, and its earnings have more or less tripled. They grew about 12% a year. At the same time, its P/E contracted from 45 times to about 14 times. Wal-Mart's stock is back at the same level it was in 2000, despite earnings having almost tripled, because its P/E contracted at a very similar rate. In today's environment, investors should favor absolute-valuation tools, like discounted-cash-flow analysis or breakup analysis, as opposed to relative-valuation analysis -- i.e., Wal-Mart is cheap at a P/E of 14, because it used to trade at 45. Relative valuation is a backward-looking tool, and anchors on valuations that we'll not see again for a long time. That will lead investors into a relative-valuation trap, and lead to overpaying for stocks.

Bought in 1981 because of all the new and great stores in the area.

Grows!

they suck..with ther rudeness

stores are dirty and smell funky

don't like store

not for coming recovery

no growth

just sold because they are really not doing much

Treats workers like crap. It's pverseas China connection will caught up to it.

Although this stock tends to stay in its zone, it never really goes higher and you cannot make money on a stock like this in this market, at this time in the recovery. Longterm yes, shorterm no.

JUST HANGING OVER ITS 52WK PRICE RANGE

Stagnant price, no room for growth