Wal-mart (WMT) at $45: Mason Hawkins Likes WMT!
valuez
Wal-mart! Here is his posting to our alumni group:
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10-29-2005 10:13 am from Mason Hawkins (email deleted for privacy)
I will buy Wal Mart because: 1. It is at its lowest price earnings
ratio in over 10 years. 2. It has acceptable profit maigins. 3. It
still has room to grow. 4. It is well managed.
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Welcome Mason, to our world-class investment research egroup! We hope
you are real one-and-only Mason Hawkins from Southeastern Asset
Management ( http://longleafpartners.com ). But even if you are just a
fan of him, you still got a round of thundering applause from the
Columbia classmates.
We look forward to your enlightening input in the future! We will
definitely email you a couple of our discoveries also to seek your
take.
Respectfully yours,
Brian
P.S. From what hear in China, the room for Wal-mart to grow in over
there is amazing large. And there is absolute no objections from City
Counselmen. All the major Chinese cities would beg for Wal-mart to open
a huge store there. Any other inputs from the other smart guys in this
group?
-----
Brian Zen, CFA, PhD
http://zenway.com - awaken the billionaire within
investment research, training & management
valuez
Buy WMT. If they grow ESP over the next 5 years at only 10% (down from
15%) and the PE is a market average PE of 18...then buying the stock at
a price between $43-$44, of the above assumptions hold true (10% EPS-
18 PE) then WMT would have a stock price of about $85 share or a 12.5%
annual ROI. 2 wildcards--EPS grows greater than 10%; and PE expansion
as market prices in WMT's enduring competitve advantage.