Retail Giant Wal-Mart Sold Off this Morning – We’re In
Fiscal Q4 was about as expected, but Wal-Mart (WMT) lowered guidance for FY 2014 to a range of $5.10 – $5.45. The stock sold off a little, dropping as low as $72.81.
Market Shadows picked up 55 shares @ $72.99 for our Virtual Value Portfolio. The $4,014.45 purchase comes out of our cash reserves.
WMT’s management boosted the dividend by 2% from its previous level, kicking it from 47-cents to 48-cents quarterly, or $1.88 to $1.92 annually. That results in a current yield of 2.63% at our $72.99 entry price.
Our Virtual Put Selling Portfolio already had shorted two contracts of the WMT Jan. 2016, $70 puts. That took us to a full position in the Put Selling Portfolio. I did add some sales of WMT Jan. 2016, $75 strike puts @ $9.10 – $9.30 per share in my personal accounts this morning.
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