Not too long ago, this advisory sold its remaining stake in Wal-Mart Stores, Inc. (WMT-NYSE, $77.11) at the $56 US level for a tidy profit. As editor Barry S. Arnold sees things, consumers are still too strapped for cash thanks to the jobless recovery, high utility bills after an unusually harsh winter and ObamaCare sticker shock. He acknowledges that banks are loosening their tight reins on consumer credit, but to Mr. Arnold it is still a tough environment to borrow for most Americans. And it's for similar reasons that he sold Kohl's Corp. (KSS-NYSE, $56.85) in early March. The family-oriented department store chain appears to be going through an identity crisis.
In terms of prices, it can't compete with the giant discounters - and at the same time, the middle market it caters to holds no appeal for high-end consumers. With earnings vulnerable over the next few quarters, "sell" KSS at the market. All this selling doesn't mean that Mr. Arnold isn't in a buying mood these days, however. He currently owns mining stock, Newmont Mining Corp. (NEM-NYSE, $23.45) and recommends that investors continue to accumulate NEM common at current prices. Gold and silver mining companies, it seems, have been basing for a year and look poised to break out to the upside. Adding some more glitter to this picture: gold mining companies are outperforming the yellow metal. In the meantime, Mr. Arnold digs deep for more attractive candidates in an industry looking set to benefit from higher gold and silver commodity prices in the coming years.
The Primary Trend, Arnold Investment Counsel, Inc., 3960 Hillside Dr., Delafield, WI 53018, (800)-443-6544, US$45 for six issues, $80 for 12 issues. www.primarytrendfunds.com
Investor's Digest of Canada, MPL Communications Inc.133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846