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Even Wal-Mart Can't Escape Inflation
05-17-2022, 01:35 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,330
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Even Wal-Mart Can't Escape Inflation
130.96 -17.25 (-11.64%)
Don't own it, but my Target stock is down in sympathy.
Thought about nibbling until I read this.
Walmart also signaled it expected many of these cost pressures would remain a drag on profitability throughout the year. The company cut its profit outlook and now sees a decrease of about 1% in earnings per share for the full year, compared to a prior outlook of an increase by mid-single digits.
That, combined with the fact that it's down this much on a day when the markets are euphoric, tells me I should probably avoid it...at least for now.
Opinions ?
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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05-17-2022, 01:47 PM
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#2
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Moderator Emeritus
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 15,039
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In this market, if you miss your target, you get to go behind the wood shed for a beating. 
__________________
Everyone has a plan until they get punched in the mouth...philosopher Mike Tyson
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05-17-2022, 04:38 PM
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#3
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Full time employment: Posting here.
Join Date: May 2019
Posts: 958
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I've certainly noticed Walmart's prices going up! Yes, they can't escape inflation, either.
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05-17-2022, 04:58 PM
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#4
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Full time employment: Posting here.
Join Date: Oct 2021
Posts: 502
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 Quote:
Originally Posted by ownyourfuture
130.96 -17.25 (-11.64%)
Don't own it, but my Target stock is down in sympathy.
Thought about nibbling until I read this.
Walmart also signaled it expected many of these cost pressures would remain a drag on profitability throughout the year. The company cut its profit outlook and now sees a decrease of about 1% in earnings per share for the full year, compared to a prior outlook of an increase by mid-single digits.
That, combined with the fact that it's down this much on a day when the markets are euphoric, tells me I should probably avoid it...at least for now.
Opinions ?
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My company's chairman, who is a big time guy worth ~10 digits, and whose firm owns a LOT of companies thinks this inflationary period is going to last over 5 years, and likely 10, especially in Europe but also to a lesser degree in the US. Three primary factors - huge increase in money supply, this oil shock with Russia/Ukraine will end up worse than the oil embargo and take over 5 years to settle, and decoupling of the west from China will all 3 combine to cause very high inflation for a very long period. He thinks inflation is just getting started. He thinks companies that haven't started raising prices a lot are way behind the 8 ball and may never catch up.
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05-17-2022, 05:01 PM
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#5
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Moderator Emeritus
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 15,039
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My wife is handicapped so I do all the shopping.
I am seeing grocery prices in WM go up weekly. As an example, precooked Jimmy Dean breakfast sausage packages that were $3.50 (8 links) last year, jumped to $4.50 this year. And today when I was there, that same package is $4.82.
__________________
Everyone has a plan until they get punched in the mouth...philosopher Mike Tyson
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05-17-2022, 05:25 PM
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#6
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Recycles dryer sheets
Join Date: Jan 2022
Posts: 143
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Prices for limes and avocados have tripled.
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05-17-2022, 05:30 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 14,121
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A carton of soft cheese at Costco was $3.90 a few weeks ago. Now it's $4.30. A 10% increase.
I guess I will keep buying as many I-bonds as I can get my hands on.
What I don't get is how quiet the general population is about it. In the 70's people were frustrated, aggravated, and darn angry about it. Today, it's like, well... the last two hours of the local street fair was canceled due to bad weather. Unfortunate, but who cares.
Anyway, time for me to go to Costco before the container of cheese hits the price of a gallon of regular gasoline.
__________________
The worst decisions are usually made in times of anger and impatience.
Self proclaimed President for Life of Outliers United.
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05-17-2022, 07:23 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 2,220
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One of my guilty pleasures is Good & Plenty. For a long time, a box was $0.99 at my local Menards. A couple months ago it jumped to 1.24 a 25% jump virtually overnight.
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05-18-2022, 11:41 AM
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#10
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Dryer sheet wannabe
Join Date: Jan 2022
Location: Murray
Posts: 11
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Everyday that WMT falls like this I buy 5 shares. They aren't going anywhere.
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05-18-2022, 02:04 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,171
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Quote:
Originally Posted by Northforker
Everyday that WMT falls like this I buy 5 shares. They aren't going anywhere.
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I put in an order for 10 shares at $120. U r right. Walmart isn't going anywhere.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. New target 202?.-
-"Blow that dough"-Robbie
" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
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05-18-2022, 02:06 PM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 31,695
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Quote:
Originally Posted by Magus
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Yeah, my TGT puts got crushed today... I may well end up owning TGT.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-18-2022, 02:11 PM
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#13
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Moderator Emeritus
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 15,039
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Quote:
Originally Posted by pb4uski
Yeah, my TGT puts got crushed today... I may well end up owning TGT.
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I remember when TGT was around $50 the last time they were in trouble and had to close the stores in Canada. Start selling covered calls!
I may get F and INTC dropped on me tomorrow if they go further south.
__________________
Everyone has a plan until they get punched in the mouth...philosopher Mike Tyson
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05-18-2022, 02:15 PM
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#14
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Full time employment: Posting here.
Join Date: Nov 2016
Location: Fargo
Posts: 673
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Is Target 26% less valuable today? At least for the day it is. Lagging indicators.
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05-18-2022, 02:24 PM
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#15
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 14,121
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Quote:
Originally Posted by CRLLS
One of my guilty pleasures is Good & Plenty. For a long time, a box was $0.99 at my local Menards. A couple months ago it jumped to 1.24 a 25% jump virtually overnight.
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Man! You have my mouth watering for a handful of those goodies. I haven't thought of them in years, but now I feel like a child again. 
__________________
The worst decisions are usually made in times of anger and impatience.
Self proclaimed President for Life of Outliers United.
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05-18-2022, 03:29 PM
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#16
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Full time employment: Posting here.
Join Date: Jan 2014
Location: Austin
Posts: 619
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Quote:
Originally Posted by CRLLS
One of my guilty pleasures is Good & Plenty. For a long time, a box was $0.99 at my local Menards. A couple months ago it jumped to 1.24 a 25% jump virtually overnight.
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I am SO glad to hear I'm not the only one who noticed that! Good & Plenty's along with Dots and Reese's Pieces have been a movie night at home staple for me for years. And they've been .97 at HEB for that long until recently when they jumped to 1.24 overnight as well.
__________________
ER'd 6/1/2014 @ age 53.
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05-18-2022, 03:48 PM
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#17
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2008
Posts: 32,575
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Cisco just reported bad earnings after market close. Share price drops 12% in after-market trading as I write this. It's at 67% of its previous high, for a loss of 33%.
Is there any stock that can escape some spanking? I doubt it. That's what a bear market is, when there's no place where you can hide.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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05-18-2022, 04:28 PM
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#18
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 31,695
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Quote:
Originally Posted by aja8888
I remember when TGT was around $50 the last time they were in trouble and had to close the stores in Canada. Start selling covered calls!
I may get F and INTC dropped on me tomorrow if they go further south.
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I should be ok for Friday... I have 45 written put contracts expiring then and the closest one to being in-the-money is 4% out-of-the-money right now. I have 2 contracts expiring next Friday and 18 expiring on June 17.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-18-2022, 05:35 PM
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#19
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Full time employment: Posting here.
Join Date: Oct 2021
Posts: 502
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Quote:
Originally Posted by bloom2708
Is Target 26% less valuable today? At least for the day it is. Lagging indicators.
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Their 2023 consensus fell/falling a ton. 25% drop is actually a slightly higher forward p/e than they were yesterday
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05-19-2022, 10:15 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Jun 2017
Location: Western NC
Posts: 3,362
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Quote:
Originally Posted by CRLLS
One of my guilty pleasures is Good & Plenty. For a long time, a box was $0.99 at my local Menards. A couple months ago it jumped to 1.24 a 25% jump virtually overnight.
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Everything at our "Dollar Tree" stores here jumped from $1 to $1.25 overnight not too long ago.
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