John has some valid concerns about Wal-Mart
But does Wal-Mart have a policy of hiring illegals and locking them up in the stores for the entire week in an attempt to keep costs low? Of course not.
From an investor's point of view, health care is the only factor that I think is a cause for concern. While plenty of angry politicians might want to take a poke at Wal-Mart, they can't really do so, except in cases like this. Of course, they may have pretty ridiculous measuring sticks, and they may be under the influence of Wal-Mart's competition, but their barbs could sting.
But that's only a could. I think Wal-Mart will do plenty to keep its health care costs within limits that will please everyone. The infamous Wal-Mart memo about encouraging physical labor to discourage unproductive, unhealthy employees? What, exactly, is so bad about this? Since when is there a right to work, let alone a right to be an unhealthy, lazy employee? I think Wal-Mart should do more! Run the staff through calisthenics before every shift. Encourage employees to drop the smokes. Do whatever it takes to keep the costs low. And, keep in mind, Wal-Mart has already stepped up with a low-fee, high-deductible plan that will be affordable.
Furthermore, I expect to see Wal-Mart toss around its muscle with health-care providers and drug sellers to get this done. The world's No. 1 retailer didn't get to that point by playing Mr. Nice Guy on costs of goods sold, and I think it will be equally aggressive on administrative costs, especially the ones that are shooting up most quickly.
With Wal-Mart, investors are riding with proven success. The company has always overcome insurmountable obstacles, and it will continue to do so. Health care? That's just another Kmart. And you know what happened there.
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Seth Jayson doesn't like shopping at Wal-Mart, but he keeps the stock on his portfolio's shopping list. At the time of publication, he had no positions in any stock mentioned here. View his stock holdings and Fool profile here. Fool rules are here.
