Even Wal-Mart Can't Escape Inflation

[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 ?

 

[aja8888]

In this market, if you miss your target, you get to go behind the wood shed for a beating.

 

[GenXguy]

I've certainly noticed Walmart's prices going up! Yes, they can't escape inflation, either.

 

[Magus]

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 ?

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.

 

[aja8888]

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.

 

[Phroig]

Prices for limes and avocados have tripled.

 

[Chuckanut]

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.

 

[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.

 

[Magus]

Target is down 20% in premarket with a similar report to Walmart
https://www.cnbc.com/2022/05/18/target-tgt-q1-2022-earnings.html

 

[Northforker]

Everyday that WMT falls like this I buy 5 shares. They aren't going anywhere.

 

[Bigdawg]

Everyday that WMT falls like this I buy 5 shares. They aren't going anywhere.

I put in an order for 10 shares at $120. U r right. Walmart isn't going anywhere.

 

[pb4uski]

Target is down 20% in premarket with a similar report to Walmart
https://www.cnbc.com/2022/05/18/target-tgt-q1-2022-earnings.html

Yeah, my TGT puts got crushed today... I may well end up owning TGT.

 

[aja8888]

Yeah, my TGT puts got crushed today... I may well end up owning TGT.

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.

 

[bloom2708]

Is Target 26% less valuable today? At least for the day it is. Lagging indicators.

 

[Chuckanut]

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.

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.

 

[Looking4Ward]

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.

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.

 

[NW-Bound]

In this market, if you miss your target, you get to go behind the wood shed for a beating.

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.

 

[pb4uski]

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.

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.

 

[Magus]

Is Target 26% less valuable today? At least for the day it is. Lagging indicators.

Their 2023 consensus fell/falling a ton. 25% drop is actually a slightly higher forward p/e than they were yesterday

 

[ncbill]

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.

Everything at our "Dollar Tree" stores here jumped from $1 to $1.25 overnight not too long ago.

 

[Turbo29]

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.

In the 1970's many stores, including almost all grocery stores didn't accept credit cards; one needed cash to buy food. I have read a few articles lately that Credit card debt is on the rise as consumers face higher prices almost across the board.

Once people's cards are all maxed and they can't afford the weekly grocery trip, watch out.

 

[jr6035]

If it falls under $100, load up, you will never see this again.

 

[Northforker]

The last time it was under $100 was 4/1/2019

 

[NW-Bound]

WMT's all-time high is 160. At 100, it will have lost 37.5%. This is quite within the realm of a recession.

When that happens, WMT will have a lot of company. One will not have enough money with so many bargains to chose from.

 

[NW-Bound]

I just noticed that Target stock price is 57% of its high back 1 year ago. Man, that hurts.

TGT's valuation looks less expensive than WMT.

I sold TGT at 152.5 back on 9/2020, due to a call option getting assigned. I never bought it back, and it climbed as high as 269. Now, it's 153, back to where I sold.

Time to watch this thing, and to buy it back or sell some puts.

Oh wait! Didn't I say I should not be buying stocks or selling puts yet? Darn, it's hard not to do bottom fishing.