This week as it seems is every week has been a busy one for President Trump.
The mainstream media relish documenting every frustration Trump has had since becoming POTUS and is one of the main reasons why I stopped consuming mainstream sources of ‘news’ and instead rely on a hefty dose of scepticism whilst scanning news headlines.
In reality investors have been frightened by a growing White House scandal which could derail Republican initiatives to boost the economy.
Investors need to fret though.
As Trump landed in Riyadh this weekend Saudi Arabia has offered to invest into America’s infrastructure – estimates range between $40 billion and $300 billion – in exchange for arms deals so there is light at the end of the stimulus tunnel for the US economy.
The debacle unfolding in Brazil would not have escaped Trump’s notice insofar as Brazil’s stock market has had to suspend trading operations for 30 minutes this week to avoid catastrophe brought about by a political scandal.
Only one year after taking office, Brazilian President Michel Temer could be on his way out of after allegedly being caught on tape authorising businessmen to bribe former House Speaker Eduardo Cunha.
Walmart’s head of online sales Marc Lore is determined to beat Amazon on prices across 80% of its sales with initiatives including giving a 10% discount to shoppers if they pick up online orders in-store and thus inciting them in to add more items to their basket.
Lore also decreased Walmart’s free shipping threshold from $50 to $35 earlier this year as well as shortening it’s delivery window by up to three days.
Walmart also managed to increased diluted EPS by 2%, revenue by 1.4% and returned $3.7 billion to shareholders through dividends and share repurchases.
Sadly as Walmart’s current PE Ratio of 17 is above it’s PE5 of 13.5-14 it’s not a stock I’m interested in purchasing at this time and indeed one look at the chart can see that it’s price has increased substantially from it’s 2015 Q4 lows:
— David Thomas (@djthomas) May 20, 2017
To use high street sales parlance as value investors we need to make sure that we pay for stocks at rock bottom prices (or as good as) otherwise we’re not protecting our downside.
Still it’s good to see that at least one high street retailer is making headway whilst others such as J.C. Penney (NYSE: JCP), Sears Holdings (NASDAQ: SHLD) and Macy’s Inc (NYSE: M) are shrinking their physical footprint by closing stores and laying off employees.
According to the Labor Department, the U.S. retail sector lost 60,600 jobs in February and March 2017 – the worst two months for the sector since the tail end of 2009.
Less foot traffic and increased competition especially from Amazon suggests that additional store closures and layoffs are on the horizon.
Monday 22 May – Friday 26 May 2017
All stocks have a market capitalisation of a least $1 billion at the time of writing
Monday, May 22, 2017
Agilent Technologies (A)
Booz Allen Hamilton (BAH)
DXC Technology (DXC)
Hewlett Packard Enterprise Co (HPE)
Luxoft Holding (LXFT)
Tarena Intl Adr (TEDU)
Tuniu Corp (TOUR)
Videocon D2H Ltd (VDTH)
Yirendai Ltd (YRD)
Tuesday, May 23, 2017
Cracker Barrel Old (CBRL)
Heico A (HEIa)
Momo Inc (MOMO)
Toll Brothers (TOL)
Wednesday, May 24, 2017
Advance Auto Parts (AAP)
Bank of Montreal (BMO)
CSRA Inc (CSRA)
Eaton Vance (EV)
HP Inc (HPQ)
Lenovo Group Ltd PK (LNVGY)
National Bank of Greece (NBGGY)
Pure Storage Inc (PSTG)
SpartanNash Co (SPTN)
Taro Pharma Industries (TARO)
Tata Motors (TTM)
Tech Data (TECD)
Thursday, May 25, 2017
Best Buy (BBY)
GameStop Corp (GME)
Hormel Foods (HRL)
Marvell Technology Group (MRVL)
NGL Energy Partners LP (NGL)
Nomad Foods (NOMD)
Royal Bank Of Canada (RY)
Sanderson Farms (SAFM)
Signet Jewelers (SIG)
Toronto Dominion Bank (TD)
United Utilities Group PLC (UUGRY)
Veeva Sys Inc (VEEV)
Friday, May 26, 2017