New Reports of Wal-Mart Russia
Reports of out Russia suggest Wal-Mart Stores Inc. (WMT) may be in negotiations to buy a controlling stake in one of the country’s leading “hypermarket” big box retailers. An article in the Kommersant newspaper said the ownership stake in Lenta could approach 51%. This follows similar reports in July 2008.
The move would be in keeping with Wal-Mart’s recent international history as the majority of its expansion outside the U.S. has been through initial partial ownership stakes rather than green-field development, according to UBS analyst Neil Currie.
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Cramer's Mad Money - Is Wal-Mart a Speculative Stock?
Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Friday April 3.
Speculation Friday: Wal-Mart (WMT)
Who would have thought that retail giant Wal-Mart could be a speculative stock? However, Obama’s proposed legislation, the Employee Free Choice Act, which makes it harder for employers to prevent employees from forming unions could threaten Wal-Mart, which has been profiting from the lack of regulation in this area. The high cost of unionized labor will deal a harsh blow to Wal-Mart, and Cramer was critical of Obama’s plan to implement such reforms while the economy is still struggling. For this reason, he predicts the Employee Free Choice Act will be defeated, and it is worth speculating on Wal-Mart.
Believe the Rally: Celgene (CELG)
The skeptics say 24% jump in the market was due to short covering, but Cramer thinks the rally is real and has more permanent bullish reasons behind it. He believes housing is bottoming and the reforms of the Federal Reserve are creating conditions for recovery. Cramer would not buy stocks now, since many are up as much as 50%, but would consider buying solid names such as Celgene on a pullback; “The easy money’s already been made,” said Cramer, “but that doesn’t mean we’re not still going higher.”
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Payday Lenders Find Support In Congress
My high school math teacher, whom I profile in the book Teacher of the Year, The Mystery and Legacy of Edwin Barlow, had a fascination with Alice in Wonderland. I postulate that he found personal resonance in the need to apply logic and fortitude in the face of irrationality and insanity.
Neither he nor Lewis Carroll could have expected this story would be a metaphor for the payday loan debate. Stocks in this sector are First Cash Financial Services (FCFS), EZCorp (EZPW), Cash America (CSH), QC Holdings (QCCO), Dollar Financial (DLLR), Advance America (AEA).
Two extraordinary events took place in the U.S. Congress this past week concerning payday loans. First, Members of the House Subcommittee on Financial Institutions and Consumer Credit showed intelligence and thoughtfulness in their statements and questions. Second, one member introduced the best bill the American people have seen in a long time.
I’ve made the case for payday loans many times before, so I won’t reiterate them here. However, this hearing is a must-view for anyone who wants to see an honest debate about the issue. I am admittedly shocked that this wasn’t the typical PDL witch hunt.
The White Rabbit Speaks
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