Thursday, October 15, 2009

Business Article


Article Link
Summary of article

The above link contains an article that highlights Wal-Marts ability to rally during our current economic crisis. This article was posted on Bloomberg.com on 10/15/09.

According to the S&P 500, which is a division of McGraw-hill that publishes financial research and analysis on stocks and bonds, Wal-Mart has rallied the last 22 months. There shares were actually up at the end of each week.

Wal-Mart was able to do this because they practice overall cost leadership, which is offering the same or better quality products at a price that is less than what any of the competition is able to do. For them this has proven to be a great advantage. The current economic climate calls for everyone to be conscious of spending. The article suggests they are a recession proof company.

Wal-Mart peaked at 62.1 on 9/12/08, while financial giant Lehman Bros filed for Bankruptcy. Wal-Mart’s profit increased 5.3 percent this year, even as the U.S. gross domestic product shrank.

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