growth

Wayne Weddington, managing partner of Brunswick Capital Partners, came on the show to talk about a hedging strategy through pairs trades involving going long on consumer staples like McDonald's(MCD) and Wal-Mart(WMT) while shorting SPDRs(SPY).

"Is the Wal-Mart (WMT) downgrade by Goldman Sachs 'right?' How about the Target (TGT) upgrade that comes with it? Is it time to desert Wal-Mart for Target because things are better? Because people will now shop at the 'nicer' stores?" "Retail Is a Microcosm of the Broad Market," 6-15-09

Who doesn't shop there. It is a giant.

Retail Dept,consumers.

The most glaring of all: Wal-Mart (WMT). This company was written off again by the cognoscenti when it reported, and it just made no sense to me. It is being buoyed by a rare positive article in the Journal (though you could argue that it was no more than a backhanded slap at Target (TGT)).

Against the Grain: Sell Gap!: Marek Fuchs warns traders not to break out the bubbly on Old Navy alone.
Click here to watch the video.

Moderate Outperform - Price 49.90
on May 19 by First Global

Wal-Mart delivered a decent performance in the first quarter of fiscal 2010, with the reported EPS coming in at the higher end of management's guidance, as well as ahead of our estimate. However, the company's net sales declined in the quarter due to a fall in revenue of the international business segment, which was adversely impacted by fluctuations in foreign-currency rates and a decline in Sam's Club sales on account of a fall in fuel prices. Nevertheless, WMT outperformed the competition in every market that it operates in, as the company's top line grew at a faster pace than the market despite the strengthening U.S. dollar and ongoing recession.... We believe Wal-Mart's Every Day Low Price (EDLP) strategy will continue to attract cash-strapped consumers hunting for value...We expect the company's gross margin to improve on the back of better inventory management and a higher-margin product mix, though its operating margin will come under pressure on account of increased spending on transformation projects and other technology-enhanced initiatives...We reiterate our rating of Moderate Outperform. Market cap: $192.3 billion.

Most Stock owned

In addition to Wal-Mart Stores, he also holds bonds of U.K.-based Tesco, the world's third-largest retailer after Wal-Mart and France's Carrefour.

trade imbalance

sideways

Has not recovered from March downturn.

Others are gaining and focus has changed

too boring

When Your on Top Too long you get knocked down/ Unionisation Problems Brewing

they all make money sometimes

Labor relations problems.

Dead money

low beta