Friday, January 28, 2011

How Business Strategy Drives Stock Price Behavior

Over the past 5-years the stock price behavior of Wal-Mart (WMT) versus Target (TGT) has been a Tale of Two Stocks.  WMT was relatively unaffected by general market movements whereas TGT was not.     Both stocks have similar business models but different business strategies.  That is, business strategy matters and financial statement analysis will let us understand why.                  


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