Wal-Mart's initial effort to reach out to minority-owned businesses has landed one major investment: Simeus Foods International. Simeus, which is black-owned, is the
largest minority-owned food processing company in the United States. Simeus stands to land about $25 million from the Wal-Mart investment -- the first from Wal-Mart's private investment equity fund meant for investment in minority-owned businesses.
After being heavily criticized over the last few years for "crushing" local business and driving some minority-owned businesses to the brink (well, of something), Wal-Mart got into the private equity game last year -- and Simeus is the first recipient of one of the new
happy community faces of Wal-Mart.
So, what's your take? Is this semi-high visibility public relations effort enough to affect investors' moods on the stock? Doubtful -- the bottom line numbers such as profit, growth, EPS and future investment in the business almost always count more on the weight of a company's stock. But, this
is the world's largest retailer -- can positive and very public functions like this even make a dent? Sure they can -- and they should. Take note.
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