Sunday, September 18, 2005

Downgrades and Upgrades: WMT

We're initiating tons of coverage this weekend.

On Saturday, we went ahead and downgraded Walmart from our earlier Hold Rating to a Sell Rating.

Pre Katrina, we were a bit more bullish on Walmart.

Thanks to Katrina, the retail industry is suffering.

As a gargantuan multinational, WMT's explosive growth is behind them.

In addition, WMT is still roiling from an outsourcing/labor abuse backlash.

That's not to say the #1 retailer is a dog.

On the plus side, WMT is getting its face wet in RFID technology, tearing the China market wide open, and turning into post Katrina heros vis-a-vis their logistical prowess.

But with little to no significant earnings accelerating catalysts on Walmart's horizon, we're pulling the switch.

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