WalMart was the first stock discussed in this column on 10/08/2009.

The stock was selling at $51 and now goes for about $49...a decrease in price of 4%. This is a wonderful example of the difference between price and value. Price is what you pay...value is what you get. Do you think WalMart is 4% less valuable than last October?

The stock market is pricing the market value of the company at an amount equal to six months revenue. Currently the company itself is selling for a greater discount than the products on its shelves.

WMT is buying back large amounts of its shares believing the remaining shareholders will be enriched in the future when the company is properly valued. More customers will shop at WalMart if the economy stays tepid. If the economy grows there will be more WalMarts worldwide for shoppers to visit.

Here’s a thought: Compare placing money in a money market account at .05% with placing it in WMT shares with a dividend yield of 2.50%. No guarantees of course but which will be worth more in five years? Preston F. Sanders is a Chartered Financial Consultant and Registered Investment Advisor. He lives in Washington, Georgia, and can be reached at prestonsanders@bellsouth.net.

NOTE: Any investment can lose value. Don’t buy any stock without a careful evaluation of its appropriateness for your situation. See your financial/investment advisor.