Going long WMT here after a 30% 12-month run is one of the sleepier TRADE’s we’ve put on recently in retail. That’s especially the case when you take into account that all of the earnings upside in our model is coming from lower SG&A vs last year and lower share count. Hardly something to get super excited about. The historically low short interest coupled with the historically low Buy rating percentage probably cancel each other out. But how can we ignore that management has hardly sold a share since a 22% run stated off in March?
Per Keith… “Buying WMT at $73 at immediate-term TRADE oversold is better than chasing it at $77. Everything has a time and price. We’re going to keep a tight leash on this one.”
Short Interest Might Be Low, But The Sell-Side Does Not Like This Thing
Management Not Selling Despite The Run