I was in a store in Neenah WI on Saturday. - At about 1:30 in the afternoon. Thee were lines on both sides of the store that extended to the back of the store for people waiting to check out (the process took about 35 minutes of waiting) - The were making sales but incurring a large opportunity cost (people walking out abandoning purchases because they didn't want to wait) - They should have opened up the jewelry counter for regular check pout -and probably the service desk - they also should have brought out the "training register" from the back as an extra register to help move people out more quickly. poor customer service-poor management response. (they might have also passed out water etc. to people waiting in line) - i don;t know if the long lines and asales make me want to buy more - or if he bad service makes me want to short this...because long term it doesn't appear that things are run with the customer in mind...
Because money is money - dollar to dollar revenue. - if you have ever been in business you know how hard it is to generate revenue. - Walmart has been consistent and growing. - They make money and pay a dividend. There is a lot of leverage in a business that generated more than two dollars of sales for each dollar in valuation. (a little cost savings can go a long way to the bottom line) When you valuation is leveraged to the hilt the opposite effect sets in. When you are "priced to perfection a little stumble will send you down a long ways. - with that said each stock has it's place for an investor. (I actually own both but for different reasons to balance my portfolio)
It's above $2.00 now and appears to be headed higher....
Google is now over $7.00 in share price for every dollar of revenue they generate. - Who do you think will hold up better in a market correction? Walmart will hold it's own in retail (and even continue to gain share) while it builds it's own online business. - On line to store will grow faster than people think. - There is a Walmart within 15 minutes of 85% of the US population. - That's logistic power.
An option to the reverse split would be to issue a cash dividend to share holders of $1.35 per share then fold the company - sell the rest for parts...) -Wouldn't you like $1.35 cash instead of a company trading at $.65 !
With the huge number of shares this seems to have reverted to an option to determine if they can stay in business or not. - What do you think - Will they be around year from now? If so what will the stock price be then? Market cap of 20 million? 30 million?
The question is how much can Kohl's do on the internet and internet to store pick up? - Amazon is killing retail. Good value if they can hold current sales without same store sales decreases (and at similar or greater margins. - Without new store openings the investment and growth will need to be from online.
Good chance. Lots of the recent downward price pressure due to Buffet dumping millions of his shares. - now that that is behind us - time to move forward.
I think the increase in interest rates has been baked into the stock price for some time now. - a rate increase of a modest level with a plan to slowly increase rates could actually help the stock price in that it wold bring some certainty to the market.