This post was previously posted on ZYX Buy Change Alert
Scaremongers are out in full force predicting dire consequences for Wal-Mart (WMT) arising out of New York Times article regarding bribery charges in Mexico. It is a great topic to gain publicity for the scaremongers. However, their predictions are not consistent with the past record of similar instances.
The crux of the issue here is Foreign Corrupt Practices Act (FCPA). History shows that a dip in stocks based on FCPA related news is almost always a buying opportunity.
The Plan
Previously we strongly recommended to not exceed 25% of the full core position. We also stated,
Consider not buying the entire position right here but buying in smaller tranches.
Further, our subscribers know that it is always best to accumulate aggressively at the bottom of the zone.
If the emails we received are any indication most subscribers should have an average price of around $58.88.
Stop zone is being temporarily suspended and since only 25% of the full core position is being held, the plan is to accumulate more if the stock goes lower. When appropriate there will be a signal for additional accumulation on the RTF.
