WalMart (WMT) – eCommerce Growth
It pays to do fundamental research. This bullish view on WalMart (WMT) was presented in the JaguarWebinar on June 27. We recommended buying September 87.5 Calls at $2.85. Clients closed the position on August 16 for $12.25 (+330% gain)! To learn more about our approach and how you can become a successful trader, sign up for a 4-week trial and test drive the JaguarLive chat room with some of the best traders: SUBSCRIBE
June 27th
- 00:00: Market action & expectations: Overview of the day’s action after Kudlow’s comment regarding Trump and China trade issue. Technical read of Nasdaq chart, discussion of proposed limitation of Chinese investors in US Technology stocks. Global markets looked at which are printing Bearish charts, all on trade war and tariff issues.
- 20:45: WalMart (WMT) Bullish discussion. Technical setup for both daily and weekly charts supportive of upside. Increasing usage of e-Commerce platform by customers, growth is highest in the industry beating out peers (AMZN COST TGT). Unique visitors is also sharply higher since December 2017, registering nearly 58%. Increasing pick-up locations in response to interest from customers, redesigned website and added premium brands and clothing lines, caters to the prime market consumers at this present economic juncture. Another longer-term positive is their FlipKart investment in India. Target is $96.50, Stop-Loss $81.80. Trade idea is to buy September 87.5 calls for $2.85 or less.
August 16
Wal-Mart (WMT) – BOOOM! The suggested Webinar trade from June 27th will pay off handsomely this morning after an outstanding quarter from this retail giant:
-EPS of $0.82 vs $0.68 estimate – Beat
-Revenue of $128B vs $125.99B estimate – Beat
-Total Revenue increased 3.8%
-U.S. Comp Sales increased 4.5% vs 2.3% estimate – Beat
-U.S. Traffic increased 2.2%
-U.S. Average Ticket increased 2.3%
-Sam’s Club Comp Sales (ex-fuel) increased 3.8% vs 2.6% estimate – Beat
The company would also update its FY19 guidance in which it said U.S. comps will be up around 3% vs prior guidance of 2% and that Sam’s Club Comps will be up 3% vs -1% to flat prior guidance.