Wal-Mart analysts’ meeting hits road
Posted on Thursday, October 19, 2006
URL: http://www.nwanews.com/adg/Business/170154/
Wal-Mart is taking its annual analysts’ briefing to the analysts this year, hosting the event outside Northwest Arkansas for the first time.
The official explanation: “Having the meeting in the New York area gives us additional options for programs and store tours,” spokesman Mona Williams said in a statement Wednesday.
An alternative explanation: “Their stock sucks, so they’ve got to do something to prop it up,” said George Whalin, president of Retail Management Consultants in San Marcos, Calif. “I’m sure that’s why they’re doing this. They’ve got to get those boys on Wall Street saying positive things about them,” he said. Wal-Mart’s stock has dropped more than 10 percent over the
1 past 2 / 2 years. According to an invitation sent to analysts, the New York area event Monday and Tuesday will include performances by The Eagles and Garth Brooks.
Typically, the analysts’ meetings in Bentonville have attracted 200 to 300 people.
Though that’s not nearly the crowd that the company’s annual meeting attracts, the departure of the analysts’ gathering is not welcome news to local businesses.
“The chamber and the CVB [Convention and Visitors Bureau ] both love any event that brings people to the area,” said Beth Stephens, senior vice president at the Rogers-Lowell Area Chamber of Commerce.
According to the invitation sent to analysts, the New York meeting will include visits to a Wal-Mart Supercenter and a Sam’s Club, as well as sessions on public perception of the company, global procurement plans and a strategic overview.
Edward Weller, an analyst with ThinkEquity Partners in San Francisco, said moving the 13 th annual meeting may signal a change in thinking at Wal-Mart’s Bentonville headquarters.
“Years ago, people might have said Wal-Mart is allergic to New York,” he said.
But analysts who have made the trip to the headquarters of the world’s largest retailer have found it worthwhile, he said.
“The meeting is an extremely good one that gives people a chance to understand how a big, complicated company works as efficiently as it does,” he said.
Wal-Mart first traded publicly in 1972. Its stock split 11 times as investors bid it higher, and founder Sam Walton did the hula on Wall Street in 1984, as he promised Wal-Mart workers, when the company hit a profit goal. But the stock has suffered in recent years, despite strong earnings. Wal-Mart shares closed at $ 48. 35, down 7 cents in trading Wednesday on the New York Stock Exchange. Shares have traded as low as $ 42. 31 and as high as $ 50. 87 over the past year.
To contact this reporter: spainter@arkansasonline. com