I’m long Wal-Mart, but the incontrovertible truth is that my company had a lousy month and did an equally bad job managing Street expectations. I’d like to dismiss the results and bungled communication as a one-time thing. Alas, my memory is simply too fresh in terms of recent PR and operational bungles from the biggest retailer in the world. Specifically:
 

• On December 4th, Wal-Mart announced that it expected to come in the “high end” of its December sales guidance of 1- 3%. For the less math inclined, the high end of a 1 to 3 range starts with “anything over 2”.
  
  
• Wal-Mart lowered EPS expectations for the quarter on November 13th of last year, taking numbers to between $1.03 and 1.07. Companies warning twice for the same quarter is an enormous red-flag.

  • STOCKS
  • RELATED ARTICLES
  • ALSO BY...

  SEARCH:

  Morning Cup of Jo: Murky Markets Wrap Up Year
  Birthday Windfalls
  Wish Lists Shrink, Happiness Expands
  'Ville Vertical Timeline
  Trading For a Cause
  

  Don't Let Retail's Flashing Lights Fool You
  Get On the Winning Team
  Market Strong Despite Bad Macro News
  Mulling the Market Reaction to Same-Store Sales
  Three Rules For Shorting
  

  
  
  
• The November 21st announcement that longtime CEO Lee Scott was resigning in favor of Mike Duke who, among other things had previously run International Operations, came as a surprise and wasn’t handled as well as it should have been.
  
  
• To the point of International, SSS for international operations were down over 10% for the month.

Add it all up and I’m one surly Wal-Mart shareholder. It remains a long-term investment position but one on triple secret probation. I’ve taken partial gains at better prices but am not putting them to work today, despite the stock being down 5. Wal-Mart has earned a longer leash than the Mosaic (MOS) I was trading earlier this week but being an “investment” isn’t the same thing as getting my unconditional love.

Wal-Mart, the last retailer in my portfolio, is one more bungle from being cast from my portfolio at the propulsion of my size-12 kicking it in places we won’t discuss in mixed company.