Steady Trader Think's There's A Bounce To Be Had In Wal-Mart

Serge Berger is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Serge Berger is the Head Trader & Investment Strategist for The Steady Trader. The trading pro has been an active trader since 1998 and discussed Wal-Mart Stores, Inc. (NASDAQ: WMT) following an upgrade to Strong Buy from Outperform (with an $86 price target) by Raymond James.

"I'm just waiting for a bullish reversal," Berger started off the conversation. "I really, really, really, really want to buy Wal-Mart and I think there is a really good bounce to be had here."

Related Link: A History Of The Waltons' Reign Over Wal-Mart

Berger said that shares of Wal-Mart have dipped about 20 percent from its January highs to current levels. He added that "any other stock that would have been a 40 percent move" and at this point shares are so "over extended" and could offer an attractive 5 to 10 percent return in the short-term. As such, the trading pro stated that the trade "doesn't look so bad anymore."

Raymond James' comments within the upgrade report appear to echo Berger's thoughts.

The analyst stated the risk to reward profile "strongly favors reward over incremental price risk, given that most, if not all, of the bad news seems known and priced into its current price."

Nevertheless, shares of Wal-Mart were somewhat muted during Monday's trading session.

Elconin pointed out that the upgraded instigated a higher open, "but that was it" as shares peaked at $73.49 before giving back all of its gains for the day.