Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, October 1, 2010

Article Excerpt

WAL-MART STORES INC., $53.36, New York symbol WMT, has made a non-binding offer to buy South Africa’s Massmart Holdings Ltd., which operates 290 department stores in 13 African countries. Based on current exchange rates, Wal-Mart’s offer is worth $4.1 billion. However, the company will examine Massmart’s accounts before it makes a formal bid. Any deal would require the approval of Massmart’s shareholders. Wal-Mart can easily afford this purchase: on July 31, 2010, the company held cash of $10.2 billion, or $2.79 a share. Expanding internationally helps Wal-Mart offset slowing growth in the U.S. As well, the company’s retail expertise will help improve Massmart’s profitability and market share as the South African economy recovers from the recession. Wal-Mart is a buy. J.C. PENNEY CO. INC., $27.44, New York symbol JCP, operates 1,107 department stores in the U.S. It also sells goods over the Internet. The company has announced a new long-term plan to spur its sales. As part of this plan, Penney will build new…