Bolling: Buy WMT, BJ and COST in Bulk
06/13/08 - 07:59 AM EDT
Eric Bolling
So why relate all this to you? Because I think it is great stock advice from a billionaire who has great insights. He just paid $2.8 billion for the General Motors(GM Quote - Cramer on GM - Stock Picks) building -- a record for any U.S. (and maybe just any) building. He has insights we are not privy to.
As a trader, I will now apply what I have learned to the market. I believe Mr. Zuckerman is correct in his assumption that we are not yet near the end of the housing bottom. That means that for the time being, those areas that have prospered from the downturn will continue to prosper. Wal-Mart(WMT Quote - Cramer on WMT - Stock Picks) is in the perfect place. Can you imagine that just one year ago Wal-Mart was contemplating switching its focus to a more upscale apparel buyer? Target(TGT Quote - Cramer on TGT - Stock Picks) did and see how that is working out for them? Don't get me wrong, I don't dislike Target, I just love Wal-Mart. I love the fact that they offer $4 prescriptions, low-cost apparel, even gasoline at a discount to big oil company gasoline. They are the right store at the right time. And if Wal-Mart is doing it right, so is BJs Warehouse(BJ Quote - Cramer on BJ - Stock Picks) and Costco(COST Quote - Cramer on COST - Stock Picks). If it makes sense and it is working, go with it. This makes sense to anyone who you speak to....try and find someone who thinks it's foolish to go to Costco and but stuff cheaper and in bulk (you don't have to drive that gas guzzling SUV to the store as often) now.
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