Obama's Wal-Mart war

President Obama won't stop until Wal-Mart is broken as a non-union shop.

By Jim Cramer Mar 1, 2010 7:52AM
Jim Cramer

By Jim Cramer, TheStreet


Why isn't Wal-Mart (WMT) going up? It's an important question given that we have seen some unbelievable retail numbers. Extraordinary ones. But this stock just won't rally.


When you search for the reasons, you don't get much from the research. The vast majority of the analysts love the stock. They reiterate their recommendations every single time the stock goes down a bit or does nothing. It remains the favorite play in retail.


To me, there's another reason and I thought about it this weekend because of reports that the Obama administration is thinking of throwing contracts to businesses that have the characteristics of those that are unionized. Who knows if this plan will happen; it will really hurt the small-business people that President Obama says he supports.


But what occurred to me when I saw this proposal is that the unrelenting president, as soon as he has jammed health care through, will turn his focus on the right for union organizers to use the so-called Card Check to organize the industries that aren't yet unionized. That means bank tellers -- a possible reason for the inability of the banks to rally besides the various interventions by the government and the endless foreclosures -- and it means people who work at Wal-Mart.


Find a new broker and start trading


Until this issue is put to rest -- which may be impossible because we have learned that Obama NEVER QUITS -- I wonder whether the elephant in the retail room can rally. It's just too big a target.


We have learned a lot about this president. He is dogged, something that you must be thrilled about if you are a union organizer or a member of a union. The president is your man. That means Wal-Mart's not going anywhere because I have to believe that one of the things that Obama's administration must accomplish is the breaking of Wal-Mart as a non-union shop. It's been one of the most cherished goals of organized labor for years, even bigger than trying to unionize Toyota (TM) and Honda (HMC).


I don't believe this president will believe he is successful until Wal-Mart's broken. Therefore, despite the belief among many that the consumer's doing poorly, despite acceptance of the fact that the consumer trades down to private label or shops at Dollar Tree (DLTR), Wal-Mart will have a cloud over its head until this issue is put to bed or the president wins his Wal-Mart war.


At the time of publication, Cramer had no positions in the stocks mentioned.


Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.


Related Articles:



Focus on jobs: Economic First Look


Biotech calendar: Key dates for March


Weighing Apple's iPad prospects


Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
264 rated 2
485 rated 3
679 rated 4
640 rated 5
617 rated 6
632 rated 7
493 rated 8
276 rated 9
153 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.