Stansberry Research highlighted Dan Ferris’ recommendations about Walmart’s stocks. In February, Walmart’s shares fell to about 10% after giving out its report on earnings for the fourth-quarter. The cause of the fall was said to be due to the decline in online sales and insubstantial forecast for the upcoming year – based on a report by Bloomberg.
Walmart’s stock shares dropped in the span of two years following an unsatisfactory forecast of its annual profit report that generated uncertainties of its ability to keep at par with Amazon.com in its online sales.
Being one of the largest retailers, Walmart was expected to earn $4.75 to $5 per share during the year, other items not included, in contrast to the average estimation of Wall Street which is $5.13. While the sales of Walmart for the previous quarter rose above the estimated projections, the outcome showed a decrease in orders online.
Incidentally, Walmart’s share went as low as 9.5% in the New York Stock Exchange on Tuesday February 20, 2018, the largest drop in day trading ever since October 2015. The anxiety over the situation went on as reports came in on Wednesday (February 21, 2018) that Walmart’s Head of the e-commerce division, Marc Lore, was going to leave the organization. Lore on the other hand said that the rumors were not true; however, the shares still dropped another 3% at that time. Hence, the total decline of Walmart’s stock shares was 13% as the week ended.
Dan Ferris, the Editor of Extreme Value, recommended in October 2006 that investors can safely invest their money to double profits or more for the next couple of years. He formally ended his recommendation in February 2015 because he is certain that the stocks will not continue to rise much higher at the same double digit price they have just attained. And he was correct. Since after concluding his recommendation, the shares of Walmart fell from an all-time high to more or less 35%.
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