Do you see what happens Larry when Wal-mart succumbs to "progressive" pressure and hikes minimum wage? This:
- WMT CFO: NEW HIRES TO START AT $10 PER HOUR NEXT YEAR
- WMT CFO: 2017 RISE IN WAGES TO COST $1.5B
- WMT PLANS REDUCTION IN CAPITAL EXPENDITURES THROUGH FY19
- WAL-MART SEES FY2017 EPS DECREASING 6-12% VS FY2016
Yes, the company just slashed its 2017 earnings forecast by up to a whopping 12%... but at least the workers are happy, if not so much the market as WMT stock plunges the most since September 1998, and has lost more market cap than Twitter.
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Carnage:
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Sending the dividend yield to record highs...
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Dropping WMT below $200bn market cap (and AMZN now $56bn larger)...
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We are sure these analysts will be explaining how the market has it all wrong...
Not even the company announcing a just as surprising $20 billion stock buyback is helping it.
Oh and speaking of "happy workers", now that WMT has just become an activist target, and eliminate any growth CapEx for the next 4 years, expect the company to proceed with the logical next step after it hikes wages: massive layoffs.
Congratulations American workers: you lose again!
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