I'm a new single parent & walmart employee &I'm not sure if I should buy a company share. should I?

Question

I'm a single mother so I cant afford to lose money. I just need to know if I will make money out of it. Help me educate mysef. Thank u!

Answer 1

Unless they are offering some kind of matching program, I wouldn't feel the need to buy walmart shares. Besides the dividend, you wouldn't have made money on them for the past 5 years or so. Better just getting a 5% savings account if you can't afford to lose the money.

Answer 2

Before picking the right stock you need to do some analysis. There are two major types of analysis: 1. Fundamental Analysis 2. Technical Analysis Fundamental analysis is the analysis of a stock on the basis of core financial and economic analysis to predict the movement of stocks price. On the other hand, technical analysis is the study of prices and volume, for forecasting of future stock price or financial price movements. Simply put, fundamental analysis looks at the actual company and tries to figure out what the company price is going to be like in the future. On the other hand technical analysis look at the stocks chart, peoples buying behavior etc. to try and figure out what the stock price is going to be like in the future. Earnings per share (EPS) ratio EPS = Net Earnings / Outstanding Shares There are three types of EPS numbers: Trailing EPS – last year’s numbers and the only actual EPS Current EPS – this year’s numbers, which are still projections Forward EPS – future numbers, which are obviously projections . Price to earning (P/E) ratio The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular stock analysis ratio, although it is not the only one you should consider. You calculate the P/E by taking the share price and dividing it by the company’s EPS (Earnings Per Share that we saw above) P/E = Stock Price / EPS For example: A company with a share price of Rs.40 and an EPS of 8 would have a P/E of: (40 / 8) = 5 What does P/E tell you? Some investors read a high P/E as an “overpriced stock”. However, it can also indicate the market has high hopes for this stock’s future and has bid up the price. Conversely, a low P/E may indicate a “vote of no confidence” by the market or it could mean that the market has just overlooked the stock. Many investors made their fortunes spotting these overlooked but fundamentally strong stocks before the rest of the market discovered their true worth. In conclusion, the P/E tells you what the market thinks of a stock. It tells you whether the market likes or dislikes the stock. PEG (Price to future growth ratio!) The market is usually more concerned about the future than the present, it is always looking for some way to figure out what is going to happen in the companies future. A ratio that will help you look at future earnings growth is called the PEG ratio. You calculate the PEG by taking the P/E and dividing it by the projected growth in earnings. PEG = (P/E) / (projected growth in earnings) For example, a stock with a P/E of 30 and projected earning growth next year of 15% would have a PEG of 30 / 15 = 2. What does the “2” mean? Technically speaking: The lower the PEG number, the less you pay for each unit of future earnings growth. So even a stock with a high P/E, but high projected earning growth may be a good value. So, to put it very simply, we are interested in stocks with a low PEG value.

Answer 3

Wal Mart is a great, solid company to invest in. They pay a pretty good dividend, but they're also setting themselves up for a lot of growth globally. Additionally, Wal Mart is very undervalued right now--as one poster pointed out, shares haven't done much in awhile. Analysts generally agree that Wal Mart is a buy right now. Do your own research though on some finance websites (Yahoo! Finance is a great place to start).

Here's what you should be doing for sure though:
1. Participate in your 401k plan enough to get the match.

2. Then set another few percentage points of your income aside in company stock (if you want to), especially if you have a stock purchase plan that gives you a match or lets you buy shares at a discount.

3. Then save an additional 5-10% of your income each month in regular savings for emergencies and short term goals.

As an aside, a friend of mine is a top executive at Wal Mart, and he owns lots and lots of Wal Mart stock. Wal Mart execs are compensated in Wal Mart stock and their bonuses are often tied to stock price performance. My point is that there are a lot of very intelligent, talented people who've loaded up on Wal Mart stock and are doing everything they can to boost the company and its value (including Warren Buffet, apparently). So it wouldn't be a bad idea to go along with them.

Answer 4

If the plan is how I remembered it...absolutely!

When I used to work there, they asked me to put aside part of my paycheck into it and Wal Mart would add 15% of whatever I put into it.

What does this mean?

15% free money. (That is better than most mutual funds these days.)

So definitely do it. If you are unsure about Wal-Mart stock, then sell it when you get the chance and pocket the 15%

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My take on Wal-Mart stock:

WMT will not go bankrupt in our lifetimes, and it is very stable. It is probably the most global company, if not its one of them. This means that the only thing that could make its share price decrease a lot is a global economic slowdown. And if there is a global slowdown then pretty much any stock will go down.

Warren Buffett the second richest man in the world (last i checked) owns a lot of WMT, so you'll be in good company.

Answer 5

Stocks is for long term investment. Thing is your always losing money anyway due to inflation and what not. Walmart is down now but like most major stock it will rebound. If you are employee and you have a chance to buy company stock I would take advantage of it

Answer 6

WalMart stock isn't worth buying. Save the money you were going to use to buy the stock and invest in something that has a good return. I own some WalMart stock from 3 years ago when I worked there, and it hasnt made me a dime yet...

Answer 7

If the opportunity came up I would. Do to many over charging in items that I find at walmart for a reasonable price. Compared to many other stores I have been to. It should make you money. Seems like a very good idea. I don't care what others have said about walmart. I shop there and will continue to do so.

Answer 8

If you are really looking to make money in the stock market you want to be extreamly diversified...don't put all of your eggs in one basket and don't necessarily go just with companies that you have heard of because a lot of times they are already at thier peak...Put your money into many, many different stocks...Walmart wants you to buy their stock because then they think that you will want them to succeed and will work harder

Answer 9

If you can buy the shares through Walmart at a discount to the market price of the shares, then you should buy it. Most company stock plans work this way.

Answer 10

1. do you have any debt? If I were you, I would try to pay off that debt before buying company stock.
2. do you have an emergency fund set aside? you never know what might happen, like your car could die. if you don't have a bit set aside for emergencies, I would skip the company stock.