22 February, 2006

Wal-Mart Common Stock has Lost Its Mojo

( I am currently not an owner of the common shares)

How can the company get it back? Let's put aside all the current controversy about Wal-Mart's morality, etc. I have written both positively (here and here) and negatively (here) about their business practices. The bottom line is this: things are going along just fine operationally, so why has the stock been so brain-dead for the last few years? Are investors just scared of all the Wal-Mart Jihadists* out there attempting to destroy the company? Perhaps.

What can the company do about it? Forget all the b.s. stock splits they were famous for in the past... Here's my suggestion: RAISE THE FREAKING DIVIDEND! The dividend on WMT has always been puny; the company could raise it substantially and still have enough capital for expansion... Something has to be done to re-kindle investor's interest. Weigh in with your ideas in the comments section. Believe it or not, their P.R. firms do read blogs, as I have received an email from one of them about one of my Wal-Mart related posts in the past.

*I may have coined a term here- a quick Google search of 'Wal-Mart Jihadists' doesn't really come up with anything other than articles that mentioned both words in separate places... 'Wal-Mart Jihadists' will henceforth be used in this blog to describe the irrelevant, failing unions that are losing their battle with the company, as well as the politicians and main-stream media types who sympathize with the same.

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