Tuesday, January 2, 2007

WMT - Tricks of the Trade

Just a brief word about Wal Mart. So this is what it's coming down to these days. In order to generate a sense of relief and some happiness, it seems the company is now guiding expectations lower so that it can surprise to the upside. Wal Mart over the long weekend said December same store sales would rise by 1.6%, above its forecast for a rise of just 1%. Mainstream media accounts are portraying the 1.6% gain as very good news. What?? In the glory days when Mr. Sam was still alive .6 points above expectations would have been a rounding error. Even if the spin machine gets this one to rally a little on Wednesday - where does it realistically go in the medium term?

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