The Great Wal-Mart Battery Trade-Out (XIDE, JCI, WMT)
Exide Technologies (NASDAQ: XIDE) is getting crushed today after news that the company was notified by Wal-Mart Stores Inc. (NYSE: WMT) that the retailer will stop selling the company’s auto batteries in WalMart stores. It would be the understatement of…
Johnson Controls Inc. (NYSE: JCI) is only up 1.65% at $29.50 on the news. Perhaps that small gain is because the company has a $19+ billion market cap and because it is already expected to generate over $32 billion in 2010 revenues.
Before the drop and loss of WalMart today, Exide Technologies (NASDAQ: XIDE) was expected to generate about $2.6 billion in 2010 revenues (March-2010 fiscal year-end). That will obviously be far less once the loss is factored into estimates. Exide shares are down 28.4% at $5.67. Exide has a post-drop market cap of only about $436 million and its shares have traded in a range of $1.83 to $8.87 over the last 52 weeks.
JON C. OGG
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