Thanks for sharing that Beno. I welcome & encourage other viewpoints to a trade. Although I often incorporate fundamentals such as that into the Long-term Trade ideas (of which the Growth & Incomes Trades is a sub-category of), this trade is primary based off of the technicals (charts). One thing to take into consideration is the fact that WMT has already plunged over 37% since it peaked less than 11 months ago. As the market typically looks out 6-9 months ahead, the big question is how much of what was discussed in that article has already been priced in? Again, thanks for sharing.

Wal-Mart hasn’t been a growth story in years. You have to go all the way back to fiscal 2008 to find the last time that sales grew by more than 6%, and it hasn’t been able to break north of 2% top-line growth in three years. Meandering sales growth would be fine if margins were expanding, but net margins are actually contracting. Wal-Mart sees flat sales this fiscal year and a sharp decline in profitability, and it’s going to get worse before it possibly gets better.

Shares of Wal-Mart suffered their biggest single-day drop in a decade last month after the discounter painted a bleak portrait of its near-term prospects. It sees sales growth of no more than 3% to 4% through the next few years, and it sees earnings taking another hit next year as it absorbs its latest hike to its starting wage