Racket wrote:
I'm gonna start putting spreads out for favorable entry on Wal-Mart and Microsoft today. Both of those companies have strong staying power even if there's a second wave.
I like MSFT like i said before. Totally anecdotal but there has always been a steady stream of Microsofties living on my block. You get sense about people, of course. And they tend to be really professional, workaholics, and come off as very serious. Also, a friend of ours worked for them back about 20 or 25 years ago before splitting off and creating a start-up, which they sold about 7 or 8 years later (and never worked again)....
But the folks i knew from there strike me very much like the company, in a good way, in both respects.
As i vaguely recollect, they did some very pro-community initiatives starting a few years ago which is rather exemplary among the techs.
As for Walmart, I glanced quickly at them, and pulled up Costco as a comparison. Walmart still has a lower P/E, at about 25 compared to Costco in the mid-thirties. But both will have some hefty costs to cover with added measures they need to take due to physical stores in the covid-age. Even Amazon said they were effected by these added costs at their warehouses and distribution network.
But in terms of retail, it got me thinking about Ebay. You might take another look at them. THe p/e is mid-twenties, surprisingly, and how convenient would they be in an age when people don't want face to face interactions. No stores = not much added covid precautionary measures impacting the bottom line. And there's some very established merchants on it which i would hesitate to use in a minute. The only thing that would give me pause is how much it's run up already, but that's never stopped me before.
I'm going to start a small position in it, as a matter of fact. i used to own it when it first IPO'd but haven't touched it since.