[Non-Sequitur]

You forgot the only figure that really matters in business today. Costco shares up 10% over the last year, Walmart shares down 5%.

[Mase]

You forgot the only figure that really matters in business today. Costco shares up 10% over the last year, Walmart shares down 5%.

Lots of reasons for this:

1. Hostility in some spots to Wal-Mart's inexorable expansion.
2. A slew of employee lawsuits, notably one claiming discrimination against 1.6 million women. Wal-Mart denies that but warns that the suit could lead to material, unestimatable losses.

This kind of uncertainty is what hurts their share price since EPS was up almost 19% last year. Their balance sheet is solid and their earnings power is unmatched in the industry. They also have huge piles of cash.

Capital spending eats up $.86 of every dollar of cash flow as they continue to rapidly expand. When capital projects start accounting for a smaller portion of cash flow, leaving more for the dividends, buybacks, and debt repayments their share price will increase dramatically.

[Hot Tabasco]

Costco shares up 10% over the last year, Walmart shares down 5%.

wonder if that has anything to do with the Rove like media blitz against them .......

[Tom D.]

What is the Price/Earnings multiple for each company and how has that multiple changed over the past couple of years?