Motley Fool Money: 08.17.2012
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 17 August 2012
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:08.0 | From full global headquarters, this is Motley Fool Money. |
| 0:19.0 | Welcome to the show. Thanks for being here. I'm Matt Greer and joining me in studio this week. |
| 0:23.0 | Joe Mager from Motley Fool Insight Value. James Early from Motley Fool Income Investor |
| 0:27.0 | and Ron Gross from Million Dollar Portfolio. |
| 0:30.0 | Welcome to Motley Fool Insight Value. |
| 0:33.0 | Chris Hill is not tied up in the closet. He's actually getting a vacation. |
| 0:39.0 | He'll be back in the saddle next week. I want a lower guidance. |
| 0:42.0 | This is the part of the show. |
| 0:45.0 | A lot on our plate here. We're going to talk to the star of Pawn Stars and we're also going to be talking about Facebook hitting a new low. |
| 0:53.0 | But let's begin with Walmart. Ron, the earnings look good to me. |
| 0:57.0 | 4 billion in profit, revenue up 4.5%. Same store sales in the US up 2.2%. Same store is up internationally 6.4%. |
| 1:05.0 | And yet, the stock sells off. What's going on here? |
| 1:08.0 | So solid quarter, not stellar. They missed sales forecast, you know, a little bit under analyst guidance. |
| 1:15.0 | Good news is US business, fourth consecutive quarter in a row. Same store sales increase. |
| 1:20.0 | The bad news is that although international is growing nicely, it's starting to see some slower growth. |
| 1:26.0 | And for most people, the thesis of Walmart is the international growth story. |
| 1:31.0 | So they're bringing the growth down purposefully in China and Brazil. They have to do it in Mexico because of the ongoing bribery scandal. |
| 1:38.0 | So that's this kind of impacts the thesis. The valuation stock sells off a bit. Joe. |
| 1:43.0 | Yeah, I've always been a little surprised. People frame Walmart for the international growth story. I get it. |
| 1:49.0 | But it's still only 30% of sales. And you know, I know the optimist side of that. The glass half full is there's a lot of room to run. |
| 1:55.0 | On the other hand, I wouldn't buy Walmart because it's doing well internationally. And now it's just doing well, not doing awesome. |
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