The Watchman Letter: Walmart shares are up 10% after the Herd buying frenzy, but is it justified

Walmart is a very well run and efficient company. Walmart has approved $20 Billion in Stock Buybacks in two years. At least they're using profits and not borrowing from the Bond market for their stock purchases. WMT has only been able to buy back $6 Billion in Stocks in 2018, because of lower net profits and 2.5% profit margins. Walmart has closed 68 Sams Club Stores with thousands of employee layoffs in 2018. Walmart P/E is 56, which is extremely expensive. Stock Market Bulls are looking for any company that beat earnings estimates and like a stampeding herd drive the Stock Prices higher. The economic fundamentals do not support these historic high prices. The economic recovery illusion is coming to an end. The Bull Stampede will run off the stock market cliff and it will take decades to recover.