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“Low cost society” and WalMart (WMT). Do we, the people, like that? March 20, 2006

Posted by deminvest in investment, Single stocks, Social investing, stocks.

Easy answer, isn’t it? It is considered one of the worst employers in the USA. It has a way to reduce wages to the minimum, not to mention benefits… So… No! We don’t like….

But, if we see it from a different point of view, if we have to decide where to go shopping, we make Wal-Mart the king of supermarkets. As consumer we take advantage or our fellow proletarian workers. We go there because there prices are low.
I have the feeling that Wall Mart could be a main foundation of what we may call a “Low cost society” just like JetBlue, just like Linux, just like open source world, just like Wikipedia, just like most online services on the Internet that cost less and less and often eventually become totally free.

A “Low cost Economy” is an economy in which companies must give good products at low, amazingly low cost to succeed. The world is becoming a “Low cost” planet, where consumer rule and get what the want at low, incredibly low cost.

If we do live in a low cost planet, only low cost airlines will survive… which is what is happening…

What about software? How long will Microsoft resist the lowcost long wave of Linux? Linux is such “low cost” that it is free… And not only Microsoft could be in danger, but virtually any software house could see an open source free software replace its products.

And VOIP? Sorry Telecoms…. Consumers decided they don’t want to pay for your phone calls anymore. They are flocking to Skype & friends to call for free.
And now that I think about it…t MP3s and file sharing are illegal ways by which bully consumer tell music majors: “We do want low cost music and we will have it”

I like so much this idea of lowcostsociety that I think I should open a new blog with this name. Actually I am checking on netsol.com

Ops my friends… I am sorry but you will not read this post tonight! I know how smart you, greedy proletarian investors, are! The idea of a “low cost society” is so brilliant that you will take it away from me. I will post this blog tomorrow, after having registered the excellent domain “lowcostsociety.com “.

Sorry guys and dolls, now that you’re reading the domain is taken. Too bad… for you .
But well, if you like my theory (BE LOW COST OR DIE!) you can do like I wrote yesterday. You can buy stock of an excellent low cost airline like I will next week or, if you prefer, you can get a few Wal-Mart Stores Inc. (WMT) in your portfolio. They have an honest P/E tag of 17.06, which will go down to 13.70 if forecasts will become true. A Dividend Yield of 1.30% is not the most generous you can get on The Street, but that too can get better if earnings go up as forecasted (by whom it is hard to say).

In “low cost society” China wins because it produces low cost, but USA Internet wins because its technology, design and critical mass size can allow it to give low cost, or no cost services.

In a low cost society Apple would loose. Microsoft Oracle and company would not survive very long in such low cost society either. There are some areas of business that enjoy huge profits and crazy high prices where low cost society has not hit yet.

Oil will not be low cost any soon. You can’t compete there if you don’t have a whell in your backyard!

Health care can’t either. Most of the health care system is based on decisions by two guys who usually don’t pay the money: the doctor and the patient. Since there is usually someone (government or insurance) who will pay for them, it is unlikely they will look for lowcost products. Military equipment will not be low cost. The government is not so bully about that.

How did this low cost era begin (ops one more domain to secure!)?

I think it was the Internet bubble who poured the money of investors into services which where awarded for free to consumers. We the people, the proletarians got used to get it all for free, now we want more. More for free.

If we really have to pay, please make it low cost!

Proletarians of all the world, look for lowcost companies, check their growth, look at their earnings, and don’t forget to make sure they don’t have much debt. Did you? Well now you can bet on it your money gained with your hard work.

Have a nice day!


1. Toshortray - May 13, 2006

This is the first site I have ever been on that has hit it right smack on the head. I mean dead center, true fact, right on the money. Everything said in here is the honest truth.

We live in the Greediest country in the world as far as I know of, (but this is the only country I could afford to go to anyhow).

When it comes to giving the average American a chance to make good money, you can bet there is someone who wants to keep them from doing just that. The rich want it all and they will do whatever it takes to get it from the poor. It is next to impossible for a poor person to get ahead, because the cost of most everything is so far out of our reach, all we can do is dream about it.

I for one have been on such a low income for the past 15 years now, that I am to the point of crawling out of the hole, just to try to catch up on my bills, let alone to invest in the stock market, or start my own company and so on.

But this may be just the start we all need. If we did have a lower cost society, then just maybe all of us would stand a chance of getting ahead, instead of falling behind so much. Of course the rich would not like it, but what do they have to worry about? They already have there millions and or billions of dollars, where most of us are lucky to have a thousand dollars total and that is between two working parents.

We really need to get this country going to a point where we all can make a decent living and then this country would not have all this crime and all the economic problems it is having now. Just like all the factories that are and already have shut down in my area. They would still be here, had they not have gotten so greedy and the workers had not have been so greedy. Our whole economy was based on what they made, not what the biggest majority of the other working people made.

For an example. Those factory workers averaged 25.00 per hour, where the rest of us made around 4 or 5.00 per hour. Now how can you base the average income on that? There is no way a person with common since could set an average cost of living with a difference such as that.

Those auto workers could afford what ever they wanted, (to a point), but the rest of us were lucky to even buy those factory workers old used cars, while they were getting all the discounts, rebates, or whatever else they would get when they bought a new car they helped to build. But they sure did not give us so many chances or breaks.

Had they kept there greed down do a level where it would maybe just be a little ahead of the rest of the people in this state, then maybe all those plants would still be here, more of us could have afforded to have bought new cars, to keep those factories open and producing more cars, to keep those workers and maybe even hiring more workers and keep it all going. But no, greed took ahold and that was the end of that. Now there is just about nothing left here but pure poverty and very low incomes. All that greed did not help anything, accept make the rich, richer, (for a while) and then wound up costing all those factory workers there jobs.

If we would only stop all this greed and get this country back to caring, instead of give me, give me. Maybe we could all get back to a decent living, have nicer things and afford a steak now and again, instead of eating chicken or beans all the time. Try helping, instead of taking all the time and watch how fast this country could get back on its own two feet. It does not take all that much. But you have to get rid of that greed first.

Linux and all those others are the only ones that seem to have common since to know what it takes to get America back to a great place to live and work.

There is much more that could be said along with this, but I am one lousy writer. All I do have is a lot of years experince of being poor and having lived way below the poverty level now for a long, long time, all I have left is my common since. So please bare with me and try to see for yourself what could happen if only we were to put a stop to all this greed.

Just like those movie stars. What is the since in paying them 10 or 20 million dollars for making one lousy movie, or paying the soap actors some 5 to 50,000.00 a week? That is just plain loco. Sports the same, polititians and all those over paid people that can walk into any place and say, I’ll take it, where as the rest of us have to limit where we go and have to always ask, “HOW MUCH”!!!!

It could all be so simple it is not funny. Think about it. It could work. It can happen. And make all these states equal, instead of each of them having there own set of rules on what taxes are paid. This is supposed to be America, but each state is like a totally different country. This is a true fact. Check it out if you do not believe it. And there is not really much since in that either.

I thought we were supposed to be all for one and one for all. We used to stick together, but now, it is all for me and hell with you. That has to change, or there will be no changes But it can happen. All we need to do is make up our minds and do it.

2. deminvest - May 13, 2006

Thank you Ray. Your comment is sincere, open and very interesting.
I don’t know you, but reading your writing I think you are a very good person and whish you the best.
I value your comment very very much. Thank you again Ray.

janet fann - September 26, 2011

who are you?

3. janet fann - September 26, 2011

i think that people love wal-mart . that why people love to go to wal-mart everyday. do you like Wal-mart.

4. janet fann - September 26, 2011

i think that people care about everybody

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