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On the final page of Mike Huckabee's new book, "Do The Right Thing", the former Arkansas governor and Republican candidate who got the most bang for his buck (but John McCain got the nomination) points out a little company that is based in his state.  Of course, his book was a great read, and he was sarcastically using the word "little" as he teed off a story about the company's efforts to reduce its carbon footprint. The company also has a mighty huge footprint in the investment arena, but today we will look at why members can never expect to see Wal-Mart (or anything like it) featured as an ideal buy candidate highlighted in yellow in CANSLIM.net reports.

Wal-Mart Stores Inc (WMT -$4.16 or -7.49% to $51.38) gapped down today, suffering a crushing loss as trading volume spiked to an amazing 91 million shares. The highest volume and largest point loss anywhere on a chart is an extremely ominous sign for investors still holding the stock. Gaps can often provide a clear indication of what direction institutional investors (the I criteria) are moving.  The company cut its forecast and, based on the fundamental news, it flashed a hugh technical sell signal.  Interestingly, data that is often relied upon by CANSLIM.net experts actually shows the number of top-rated funds owning shares in WMT rose from 680 in December '07 to 797 in September '08.  Perhaps the company, a mainstay in many mutual fund portfolios, has been accumulated while being viewed as a "safe haven" by fund managers with little else in the way of attractive options, but an "always in" mentality as it comes to the market. Following the M criteria, disciplined CANSLIM.net members are still largely on the sidelines - with dollars protected and preserved during the worst year for stocks since the Great Depression.  

Reasons we don't like it in the camp that embraces this investment system would include the company's quarterly earnings which are lackluster, not showing acceleration or strong growth above the +25% minimum guideline.  Sales revenues are usually showing explosive increases in the biggest stock market winners, however this goliath retailer's critical mass cannot allow it to rapidly grow. Investors who like to go "bargain hunting" sometimes call their broker when a well known company like this takes a hit, thinking it is likely to rebound.  History has shown that approach to be dangerous and damaging to portfolio values. 

Huckabee says on the final page, "I think it's fair to say that as Wal-Mart goes, so goes the nation."  Don't get depressed by that. Keep your emotions in check and stay tuned to these ongoing reports.  In time, a healthier market environment will develop, and you'll be reading about more ideal examples you might take action and profit immensely from.