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