Gavekal Capital: Wal-Mart Slightly Misses, Technicals Indicate Underperformance Will Most Likely Continue

Thursday, November 14, 2013

Wal-Mart Slightly Misses, Technicals Indicate Underperformance Will Most Likely Continue

Wal-Mart's 3Q EPS of $1.14 came in just above the street's estimate of $1.13. Same store sales disappointed as they delcined by -0.3% in the quarter versus 0% street expectations. Management set 4Q guidance of $1.60-$1.70 vs expectations of $1.69. Wal-Mart opened lower but has rebounded so far in trading today.

From a technical perspective it looks as if a two-year long up trend has ended. The good news is that Wal-Mart is not a very volatile stock and there seems to be plenty of support relatively nearby.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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