In a story dated April 22nd, Bloomberg headlined “Tesla Wants to Power Wal-Mart”. Of course, this got picked up by just about every “mainstream” news source, because… why? Oh right – next week, as we reported, Tesla’s got a big unveil of it’s Home/Utility Battery product. And they had to headline with something.
The Bloomberg piece reads like a series of tweets with a little embellishment – and may well be, but it does cover a lot of the salient points however superficially, and everyone’s acting like Wal-Mart is breaking news. Solar City, in conjunction with Tesla, started a pilot program with Wal-Mart in 2010 and expanded the program in 2012, with Tesla-branded storage. Granted, this “news” may be simply confirming that the pilot period is over, and the real program and agreements will begin.
Now 114 locations in USA !!!
Grocery growth illustrates that the retailer is winning back the US consumer. Groceries make up almost 60% of Wal-Mart's business.
WalMart has decided to better the consumer experience in its existing stores. I think this is a prudent move as it will lay the foundation of how new openings will operate.
E-commerce slowed to a 10% growth rate which was a disappointment. Grocery momentum should help e-commerce as they very much go hand in hand.
Wal-Mart hasn't had a good start in China with respect to its physical stores but e-commerce is where the company is now investing . If the company can gain online market share here, the growth rates should be high due to rising incomes and a lack of physical stores among all the major retailers.
Google guns for Amazon
Specifically, Google is entering the cloud computing business. The company best known for search pioneered the monetization of ads and is now looking for its next big revenue stream. It just hired Diane Greene, already a Google director, to head a new division that includes cloud computing and Google Apps. How much of a game changer could this be for Google and the cloud industry in general?
Walmart. ... predict that this firm will make just 4.78p profit per share, putting in on a P/E ratio of 35.75....at PRESENT =12
whereas AMZN trades at a P/E of 928.09x and forward P/E of 114.86x. The stock is valued at 43.57x EBITDA and 24.24x book value
When a major investor places a short, it can be helpful to other investors. For example, Citron Research published a report on Oct. 21 expressing concerns about Valeant Pharmaceuticals International Inc. (VRX) and its accounting of relationships with specialty pharmacies, including Philidor. Citron Research editor Andrew Left confirmed on CNBC that he had shorted Valeant’s stock.
After Valeant’s predictable denial of any accounting problems with subsidiaries, the two largest U.S. health-benefits managers stopped doing business with Philidor. Then on Oct. 30, Valeant said it was “severing all ties” with Philidor.
Philidor, in turn, said on Nov. 2 that it would shut down.
Valeant’s stock has plunged 29% since Oct. 21. The shares rose 16% on Thursday after Bill Ackman’s Pershing Square disclosed it had built a 24.5% stake in Valeant.
Another well-known short is Whitney Tilson of Tilson Funds, who has issued a seemingly endless stream of comments on Lumber Liquidators Holdings Inc.(LL) this year.
A bold short is the one placed on Apple Inc. (AAPL) by Doug Kass, president of Seabreeze Partners Management, who thinks slowing sales and profit growth will lead to a lower valuation for the stock.
When a well-known investor announces a short position, it does not mean you should necessarily follow suit. The investor is likely to be maintaining a diversified portfolio, and may not be “betting the farm” on the trade. The professional short investor also may have access to technical and financial analysis that you do not.
If a known money manager is short a stock you are interested in, or holding, at least do additional research on your own.
Meanwhile, unless you are a professional money manager who has built up sufficient expertise through years of study to play the game, stick with long positions for your investments.