Have we been caught leaning the wrong way with those two retailers, Costco (COST) - Get Report and Walmart (WMT) - Get Report? Of course, you could say we have. I mean, I'm not sitting here telling you that we're early. Right now, we're wrong.
Now, we've got good bases, but when you see the fact that these companies are loading consistently great numbers and the stock goes down, that tells you that short term, you're wrong. We know two things about the way these rotations work, though.
There comes a time when bad is just, well, plain bad, and that hasn't happened yet. We still see that Kohl's (KSS) - Get Report is going higher. And there comes a time when good is fantastic. And I think that we aren't more than 10% away from either.
And maybe Walmart's up today because of Flipkart. It’s possible. But Costco is still down. We are -- I don't think that we are 10% away. Now, 10% down in the Wall Street festival, though, that better be 10% up right after. And it better be done in 10 days or it's not legit -- I can't do that. That's that alchemy again.
Costco and Walmart will soon find their stocks back to prepandemic prices. If they keep going lower here, then and only then you have to wonder whether shortfalls aren't going to occur. ... I think both could make the numbers because they're amazing operators.
And when I spoke with Walmart behind the scenes, look, they decided they had to pay the people more. You remember the last time they did that, the stock was in the 90s, went to the 80s, they came on “Mad Money,” they said, “we had to do this,” and then, Boom! the next play, the next real break, was at 140.
OK. I think that's going to happen again. I think that Walmart and Costco are terrific.