Wal-Mart has been recently selling around its 52 week low level. Here we have a great defensive play with continued strong earnings in a recession. Traders have been recently selling Wal-Mart and venturing into more risky names because they believe the market may begin to move forward due to less severe recession measures. However, I believe buying Wal-Mart at these levels may prove to be a great investment. If traders are wrong on the depth of the recession than they will begin to pile back into Wal-Mart for its strong earnings and defensive position. If traders are correct and recession pressures ease,an investor has a chance to continue to accumulate a world class business for a great price. I like Wal-Mart around $47.00.
Wal-Mart symbol: wmt