WMT: Ride the cycle like a Schwinn

Someone once told me that a fool never changes his mind. Therefore I must adjust my outlook and abandon my position in Wal-Mart Stores Inc. Wal-Mart's business model is pretty evident to anyone who has ever visited their stores or viewed one of their commercials. One phrase sums up this business model "Always Low Prices." In my last analysis regarding WMT I stated how customer shifts would be apparent during the recession in an attempt by the consumer to save as much money as possible. I still hold this idea to be sound but after further consideration I must abandon this positive outlook regarding the stock price. Often people forget that there is a discrepancy regarding the stock price of an entity and the true underlying entity. People believed that positive measures taken by the company will affect the stock price accordingly. I used to be one of these people. Therefore I must change my mind about WMT and abandon my position. I hold my first assumption to be correct in that the recession would have a positive effect on earnings but this is not the reason Wal-Mart stock price appreciated, WMT's stock price appreciation can be attributed to the increase in price that people are willing to pay for these earnings. In hard times investors are willing to pay more for less volatile earnings. Therefore you should ultimately expect Wal-Marts stock price to remain virtually stagnant with no exuberant moves niether positive nor negative. Ultimately I am trying to instill that there are better places to put your money and vehicles that offer growth at a cheaper price.