Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Walmart (NYSE: WMT)

Grocery Wars

Will Amazon Go Kill Supermarkets, Costco, and Walmart?

An intriguing possibility is that automated stores might be more competitive because they will offer a higher level of customer service. By freeing the cashiers up to help customers, many grocery stores might be able to offer a Nordstrom (NYSE: JWN) level of customer service at Walmart price. That will be the real game changer.

If history is anything to go by, Amazon Go is likely to be superseded by semi-automated stores. Nor is Amazon necessarily the company to take automated stores mainstream.

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Market Insanity

The Retail Apocalypse is Alive and Well

Giving Walmart workers an extra $8 or $9 a day might have little or no impact on the economy. Walmart clerks can now afford to buy lunch at In-N-Out Burger; rather than at McDonald’s, how does that benefit the wider economy? Much higher wages will be needed for a real economic stimulus.

It remains to be seen if the $1,000 bonus and wage hike will have any effect on Main Street. Giving average families an extra $1,000 to pay off $1,000 of their credit card debt, might not do much for the economy. The average U.S. household now owes $15,654 in credit-card debt, Nerdwallet estimated.

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Crazy Stocks

Is UPS Making Money?

Currently, I’m leery of both UPS and FedEx because of the danger they are in, in a changing retail market. Threats to these companies abound from both new businesses and new technologies.

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Grocery Wars

Walmart plans store with No Cashiers

It looks as if the technological jobs apocalypse is occurring at America’s largest employer Walmart.
The world’s largest retailer has plans for a store where customers would simply take merchandise and walk out the door without stopping at a register, Recode revealed. Instead, cameras, sensors, and employees on the floor would keep track of purchases.

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Opportunities

Chase Freedom Giving Cash back on Android Pay and other Digital Wallets

Walmart Pay users will not get cash back by paying with Chase Freedom, but they can get 5% Cashback by using Chase Pay at Walmart. Walmart (NYSE: WMT), America’s retailer accepts Chase Pay because it is a quick-read (QR) code based application like Walmart Pay. Although Chase Pay users can get 10% cash back at Walmart; if they pay with the Chase Sapphire or Freedom Unlimited Cards, before December 24, 2017, Nerdwallet reported.

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Market Insanity

Food Service Giant Sysco Orders 50 Tesla Semis

Sysco is the largest buyer of the Tesla Semi yet; the second largest buyer is brewer Anheuser-Busch (NYSE: BUD), which has pledged to buy 40 semis. Walmart (NYSE: WMT) has plans to buy 15, the J.B. Hunt trucking company will buy several, and Canadian grocer Loblaw’s has placed an order for 25.

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Grocery Wars

Walmart is Growing but is it Making Money?

Mr. Market certainly noticed that growth, Walmart’s stock price shot up from $90.26 on November 8 to $96.40 on November 22, 2017. If Walmart has a good Black Friday that price will exceed $100 a share by December 1.

Now for the astounding news, Walmart’s revenues will clear a half a trillion dollars sometime next year if the current growth rate continues. Walmart reported $495.10 billion in revenues for October 31, 2017, up from $490.01 billion in July 2017.

If that performance is repeated in the next quarter; Walmart will report around $500 billion or half a trillion dollars in revenue early in 2018. History seems to support this conclusion; Walmart’s revenue has been growing for the past seven quarters. It has posted growth for every quarter since January 2016.

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Market Insanity

How is Musk Paying for the Tesla Semi?

Another good question to ask is does Tesla have the money to build the electric semi? The financial report’s answer is no, no, and no.

Tesla is burning cash like crazy and there seems to be no end in sight. The financial numbers also tell us where Musk got the money to finance the semi project from, he borrowed it.

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Grocery WarsMarket Insanity

It is not Amazon that CVS Health is Afraid of

The real reason why CVS Health wants Aetna is to expand its vertically-integrated business model. Vertical integration means that one company controls as much of the production, financing, marketing, and distribution of a product or service as possible.

CVS Health is already partially vertically-integrated because it operates both drugstores and prescription-management plans. CVS operates clinics in some of its stores for the exact same reason. Buying a health insurance company would give CVS, even more, control over the process.

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Crazy Stocks

Wells Fargo and the Future of Monster Banking

The potential challenges Wells Fargo faces are vast. The greatest of these is falling revenues, which probably reflects the growing implosion of the mortgage market.

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