Wal-Mart profit misses forecast; outlook weak

cnn.netscape ^ | May 12, 2005 | Reuters

[JFC]

We love Walmart. It puts food on our table.....

Walmart is one of the best ran companies in the nation. They cut costs like you would not imagine. We sell product to them and we know what it took to get our product in their stores...... very very low profit. You would be SHOCKED!

[Graybeard58]

Naturally, Chinese workers would much rather be jobless and starving to death, but evil WalMart provides them with low paying jobs. The horror!

We are in agreement.

[wideawake]

Not necessarily. It's not necessarily time to buy, either.

But if Wal-mart is truly mature and is no longer a growth business, it still has 5.5B in cash and can produce cashflow in the 20B range.

Right now the dividend yield is 1.25%. If they decided to just dividend more cash out to the shareholders it could be a stock yielding a reliable 6-7% dividend.

I'm not telling you what to do or recommending anything - make up your own mind.

But slowing growth is no reason to be a panic seller.

[timtoews5292004]

They renovate about half as many stores as they build new every year. They are constantly building and improving their facilities and supply lines.

[bfree]

Walmart bashing checklist:
1) Driving out manufacturing jobs
2) Building up the "ChiCom" military
3) Don't pay any benefits and low wages
4) Drive out all the "mom and pop" stores
5) Only store selling goods made in China
6) steal land from people to build stores

Let's see how fast all these union talking points can develop.

[explodingspleen]

how that trainwreck got tied as mantra to the conservative politic is beyond me.

Mostly via people who read and understand economics books.

[ARCADIA]

More folks buying American made goods...

Or, more consumers running out of steam.

[ARCADIA]

More folks buying American made goods...

Or, more consumers running out of steam.

[timtoews5292004]

how many mom and pop shops stayed open 24-7 and employed 100+ people a shift before wal-mart came to town?

[kellynla]

"No, if you read the article, it's more American dollars going to the Saudis."

my, my...testy for a HS student aren't you? LMAO
don't they teach "respect for elders" where you go to school?

fyi, not all crude comes from the "Saudis"...
and Walmart is still a toilet full of Chicom junk.

[wideawake]

how that trainwreck got tied as mantra to the conservative politic is beyond me

It probably started because conservatives oppose Marxism.

And regulating the economy is Marxist.

[timtoews5292004]

so far in the less than 50 posts on this topic, the only one not hit on was #6. Koblenz hit most of them in one post.

[bfree]

How are unions helping me out. Either you are uneducated in the history of unions, or you were miseducated to believe that the nice work environment you work in was simple evolution of the work environment. Either way, you need edumation. Unions are largely responsible for the humane working conditions that we work in today. The unions didnt "drive out" manufacturers, they went to nations that forcefully exploit their indigenious population. China doesnt have to worry about strikes because they imprisson/torture disidents. Its not the Chineese people, its the chineese government. Americans couldnt understand the situation because we have a military that is non political. I'm not going to go into this because it would a.) take to long to explain, b.) is probably far outside your frame of reference, like trying to explain tax cuts to liberals. Of course, if you view the world through the light of mega-corporation controlled media, then you would obviously believe that I am wrong. Give the chineese people the rights to protest and demand better working conditions and higher wages, and then talk to me (unless you believe they do... then there is nothing that can help you).

Really easy to pick out you union lovers in every WalMart bashing thread. Unions have driven manufacturing jobs out of union states in the 70's and 80's and now out of the country. China is only the latest country to receive these jobs. Remember Japan, Taiwan, Mexico? Maybe your union should send you to spelling class, it might help make your rantings more readable.

[agere_contra]

Well said.

As for buying from overseas. Sure, why not? In certain areas there is simply no way for high waged Western workers to compete with lower-waged workers who have roughly equable productivity. If you protect such an uncompetitive industry with tarriffs or subsidies you are essentially adminstering a welfare scheme in all but name.

Such protection can make sense in certain "strategic" areas. It makes sense to have some internal food industry for instance, even if other countries can grow you the food cheaper. You can make a case for your own defence industries in the same way. But - assuming that the playing field is flat in other respects - non-strategic industries simply have to compete, not ask for handouts. The laws of the Market have never been repealed.

[teledude]

Nice try in defending unions. I ain't buying it though... they had a place a long time ago, but now they are anachronistic impediments to productivity and profits.

We live in a capitalist society that rewards individualism... the whole "collective bargaining" thing is pure communism, especially coupled with the automatic "distrust" of corporations and business. You would be better off if you took your union dues and bought stock in the company with them.

Of course, I'm sure talk like this makes you want to crack my head with a pipe wrench... that's the other problem I have with unions... thugs.

[TheForceOfOne]

It boggles the mind. Walmart is so evil, they force us to buy these products when we demand to pay more. Maximizing ones buying potential is seen in almost every commercial on television by every product maker and seller yet it is only Walmart, the evil Walmart who deserves our wrath! arhh!! lol

[explodingspleen]

Are you trying to tell me that the McDonalds in China are being run by the the chicoms?

China is no longer communist. The people want capitalist goods, they want an opportunity to participate in capitalist markets, and region by region they are getting increasingly fed up with the government taking their stuff.

As participation in global markets leads to a strong middle class, the Chinese government will collapse. You can't control people who can buy internet access, afford trips to immensely superior capitalist nations, afford education, etc.

Also, you are very consistently misspelling "Chinese." Are you an expert in that which you cannot spell?

[Glenn]

>>How's your union helping you out lately?

united and u.s. air both dumped their pensions on you. that was a management decision. further, us air had the nerve this week to ask for $55 million dollars to pay "retention" bonuses to their management people.an average of 29k per manager. there is enough greed and blame to spread around.

[bfree]

I agree with an earlier post--you are truly stupid.