Wal Mart is down on union fears which is valid since the last decade we experienced a backlash to Wal Mart's style of business, but that would imply all businesses that have profited at the unions expense will reverse.
Kroger's which has been a staple for over a 100 years is trading with a PE less than 10 and a healthy union agreement. Kroger's faced the US economy throughout the turbulent 20th century and will do so now. So while investors bought Wal Mart they should have been buying Krogers.
US Steel operates with a union and a healthy relationship and has been around since J. Piermont Morgan merged his steel operations with Andrew Carnegie's, again over 100 years ago. Another centarian, AK Steel, formerly the first adapter of scrap steel (I believe) known as Armco, operates with a union, albeit not always on such great terms. Nucor, which every Tom Dick and Harry flocks to, has become what it is from not having a union like Wal Mart. Don't read the balance, but understand the trend!
Short Nucor till the cows come home, and buy Steel. Nucor, like Apple, have seen their better days. And short any other company that is union free and made outlandish profits as a result. One can even short Wal Mart since the stop would ultimately be its 52wk high.
Of course, Nucor could be bought out, but I would say the indicator would be they sell off their scrap brokerage, David Joseph. That was by far a lousy purchase which we have seen several cash flow rich companies to have done only a year ago. Look at what Dow Chemical is stuck with now!
Long Kroger/Short Wal Mart
Long US Steel/ Short Nucor
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