Should a company like Walmart be $60+ billion in debt

#26
#26
Ugh, I despise that place. 1 trip a year there is 1 too many.

Looks like a 3rd world country.
 
#29
#29
UTVOLKeith said:
options on walmart are liquid and easy to buy>>> meaning >>> that's the way i roll
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You know options? Presumably you'll be after puts. Just know, contracts don't come in singles. Maybe get a margin acct somewhere and short the stock.

I actually like a long term short position on the entire market, but that doesn't help you take advantage of this out of balance liability position Walmart is carrying.
 
#30
#30
allvol123 said:
Ugh, I despise that place. 1 trip a year there is 1 too many.

Looks like a 3rd world country.
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What Walmart do you go to? As someone who is there everyday preventing loss, I think the store is fairly organized, well lit, and at least my store has friendly people.
 
#31
#31
CNCVol88 said:
What Walmart do you go to? As someone who is there everyday preventing loss, I think the store is fairly organized, well lit, and at least my store has friendly people.
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There is definitely good ones and bad ones. The one I go to is pretty nice. I've been to others where it seriously smelled weird and felt dirty when I left.
 
#33
#33
rjd970 said:
There is definitely good ones and bad ones. The one I go to is pretty nice. I've been to others where it seriously smelled weird and felt dirty when I left.
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I think it depends on their location. Those in better areas tend to be cleaner and frequented by a more normal customer base. Get into a bad area and going into Walmart is like entering the freaking Twilight Zone.
 
#34
#34
BigPapaVol said:
I actually like a long term short position on the entire market, but that doesn't help you take advantage of this out of balance liability position Walmart is carrying.
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I'm uncertain on Walmart primarily because of the increased tax burden resulting from Obamacare. The end of the 2% payroll tax holiday was a drag on their sales in 2013.

When a large percentage of your shoppers are on the lower tier of the income scale, they are more sensitive to smaller changes in take home pay. It eats directly into disposable income.

In 2014 I believe the ACA may do much more damage than the expiration of the 2% payroll tax holiday. I would expect to see more trading down into the dollar channel and Walmart turning in meager to negative comps.

Far more ominous than their debt position when it comes to judging the value of WMT. Just my opinion.
 
#35
#35
rjd970 said:
There is definitely good ones and bad ones. The one I go to is pretty nice. I've been to others where it seriously smelled weird and felt dirty when I left.
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The one I used to go with was guaranteed to have dirty diapers and chicken bones in the parking lot at all times.
 
#36
#36
volinbham said:
The one I used to go with was guaranteed to have dirty diapers and chicken bones in the parking lot at all times.
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NC Walmarts are hood. I used to stop in the Walmarts in central PA and out further west in MD from time to time, and they were great. Very clean, very nice, wide open aisles. I was always envious of their food prices...especially for the commodities liked canned goods.

For those items here, I like to make a monthly trip to Aldi.
 
#38
#38
CNCVol88 said:
What Walmart do you go to? As someone who is there everyday preventing loss, I think the store is fairly organized, well lit, and at least my store has friendly people.
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You an APA or an APM? Which store do you work at? I'm an ASM at 3772 in Jonesville, VA
 
#40
#40
Sweet. I was always intrigued with AP, just never got the chance to go into it.
 
#41
#41
CNCVol88 said:
What Walmart do you go to? As someone who is there everyday preventing loss, I think the store is fairly organized, well lit, and at least my store has friendly people.
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there was a new one that opened around here and was sold as a 24hr store. Within 2 weeks they dropped that and closed at 11pm. There was nothing good going to happen in that store after 11. It was very nice immediately after it opened. Now it looks like no one working there cares
 
#42
#42
DC_Vol said:
When a large percentage of your shoppers are on the lower tier of the income scale, they are more sensitive to smaller changes in take home pay. It eats directly into disposable income.
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Wouldn't Walmart be the beneficiary of people with money problems? In theory if times are tough even people that would prefer to shop elsewhere might opt for WM simply because they could find stuff cheaper. Does that make sense or am I missing something?
 
#43
#43
hndog609 said:
Wouldn't Walmart be the beneficiary of people with money problems? In theory if times are tough even people that would prefer to shop elsewhere might opt for WM simply because they could find stuff cheaper. Does that make sense or am I missing something?
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All have missed my point. If bad times come...say very, very poor china relations. Walmart is basically insolvent.

But in the corporate financial environment the federal reserve has created a company that has produced the richest individual persons in the world has so much debt that it is vulnerable to bankruptcy when it shouldn't be.

As an icon of America walmart should be a rock of a company instead it has 60 billion in debt.
 
#47
#47
UTVOLKeith said:
All have missed my point. If bad times come...say very, very poor china relations. Walmart is basically insolvent.

But in the corporate financial environment the federal reserve has created a company that has produced the richest individual persons in the world has so much debt that it is vulnerable to bankruptcy when it shouldn't be.

As an icon of America walmart should be a rock of a company instead it has 60 billion in debt.
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Walmart perfectly reflects the general American attitude about debt.we are the have it now, pay for it later nation
 
#48
#48
UTVOLKeith said:
Do you consider Walmart a great company?

It certainly has produced several billionaires...

60 billion dollars in debt!

Without cheap lending and especially government assistance this company will go belly up when debt hits the bottom line.

How long would their cash pay the debt payments if they hit even cash flow?
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I just looked at their financials as of 1/31/2014 and my advice to you is to stay out of the stock market until you learn how to read financial statements.

Failing that, you need to remain silent about your analysis of companies so you don't look so much like an idiot.
 
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#49
#49
KentheOrange said:
I just looked at their financials as of 1/31/2014 and my advice to you is to stay out of the stock market until you learn how to read financial statements.

Failing that, you need to remain silent about your analysis of companies so you don't look so much like an idiot.
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I think it's been established that he has no worries about sounding like an idiot.
 
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#50
#50
UTVOLKeith said:
All have missed my point. If bad times come...say very, very poor china relations. Walmart is basically insolvent.

But in the corporate financial environment the federal reserve has created a company that has produced the richest individual persons in the world has so much debt that it is vulnerable to bankruptcy when it shouldn't be.

As an icon of America walmart should be a rock of a company instead it has 60 billion in debt.
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If bad times come (in the severity you imply) then most companies may be insolvent.

Capital structure decisions for corporations are distinct from government funding issues and Walmart is basically a rock of a company
 
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