Wal-Mart Analysis Post 1985; Money and Credit; Short Seller Blog

 I was trying to daydream, but my mind kept wandering. — Steven Wright

Wal-Mart Post 1985 Analysis

http://www.scribd.com/doc/79123757/WalMart-Competitive-Analysis-Post-1985-EOS

My Greenwald notes on Wal-Mart should help you understand how regional economies of scale work. You see returns on capital decline as Wal-Mart grows larger in assets and sales but into areas with less regional economies of scale and more competition.

Money and Credit

A short synopsis on The Theory of Money and Credit http://mises.org/rothbard/money.pdf

A reader suggested this financial blog on short selling and focus on financial statement analysis: http://www.thefinancialinvestigator.com/

Opportunity?

How does Kyocera (KYO) http://americas.kyocera.com/ir/index.html earn high operating profits on its core business of ceramics?  You will have to separate out non-operating assets like cash and investment in other companies to peel away the onion.  Are there economies of scale in R&D here?   Not a recommendation but some of you may want to have a current example to work on.

2 responses to “Wal-Mart Analysis Post 1985; Money and Credit; Short Seller Blog

  1. Hmm..They earned 19% on all assets in the ceramics segment according to the segment reporting.

    Any hints on how to separate the assets?

  2. Great you found the hidden gem of their business. They ARE the world leader in ceramics technology. Once you strip away the excess assets you see good returns. The question is…with the Yen high and problems with exporting, will there be pressure to restructure or garner a better return on the non-franchise asstes?

    Sometimes in a diversified portfolio cheapness will find a way to be discovered. But this is more a lesson in breaking apart the different assets of the business.

    When I return to my office, I will follow up on your question.

    Also, I do not place those ads on the blog. The price paid for being free.

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