It’s been a long good run with WMT purchasing 1/4 of my holdings on 1/22/09 for $48 and another 1/4 on 4/24/09 for $47.90. That’s an average of 50%+ return. Time to take a little of this off the table. I’m leaving half my position in tact and may consider buys and sells in the future.
Why am I selling half?
1. The stock appears it is running out of gas with major resistance at $75, it could pull back to the $60 or $65 level. But if it breaks $75 that would be bullish.
2. Walmart was range bound bouncing from $50 to $55 until the fall of 2011. Now with a bounce to the mid to low $70, booking a 50% profit makes sense.
3. PEG ratio of 1.7 is high. Stock appears fully if not over valued compared to the industry PEG of 1.1.
4. Earnings growth has outpaced top like sales growth. Not sustainable.
5. Revenue per employee is only average for the industry $209K
Overall I like WMT and on a pullback to the low $60s, I might add to my position. As of now, I’m happy to book my 50% profit.