ASX Shares No luck with Woolworths shares (WOW)

Why did you rush into buying WOW, what sparked the rush to get in and make such a big purchase?

Large fall in Feb, then a tumble down the hill since

Note this is only a 1 year chart, they were at $38 in April 2014

 

This will give a better idea,but most of the time most people are just looking over the shoulders of more experienced traders,who may have sold out long before..

 

Not 100% sure the OP isn't just trolling everyone...

 

Why not,they would still need extra data to go into the accounts,..

 

back on topic, what is the scenario whereby WOW return to their glory days?

-market share won't be like it used to. not with all these extra players in the market now

-margins won't be what they used to be

so how are they going to grow?

 

Quickly some thoughts ;

- cost out, WOW has been asleep for years and pushing suppliers but not themselves. That will change.

- Aldi will go to maybe c.15% market share, using UK as a guide (UK Aldi + Lidle combined are 10%). Metcash c.10% share is under big pressure from WOW and WES and soon to be Aldi in SA and WA when they open. Down at Rose Bay today and noticed the discrete WOW small store format..this will give IGA no end of trouble.

- Australian Food and Liquor sales growth averages 4-5% pa. All you need to do is hold share to grow sales. WOW in time will grab a couple of percent from MTS and WES and I think long run will hold 40-42% market share.

- Masters / BIG W will either turn or be sold. That will be decided in the next 12 months when new CEO is appointed.

- any volume growth (assisted by the 100 new stores opened in the last 18 months) will add to EPS markedly, the supply chain is beast and highly efficient.

- margin; margin pressure can be counteracted by generics, new lines, sales/volume growth and efficiency gains, stuff like self check out is very visible example, but in any business experience and tech lead to ongoing gains.. This is not to say margin levels aren't typically cyclical in business, it happens.

- this is a very large cash generative business with a footprint that cannot be replicated, in a growing industry (4-5% pa) with a highly efficient supply chain, and the opportunity to extend services to customers beyond their existing offerings. With the right leadership WOW can be turned and provide long run TSR in the 8-10% range.

Feeling a bit like Charlie Aitken after that pumped up rant, so go WOW and go Australia!

 

Woolworths to exit

Woolworths is set to sell or wind up its struggling Masters home hardware business, following joint-venture partner Lowe’s decision to sell its stake.

“Our recent review of operating performance indicates it will take many years for Masters to become profitable. We have determined we cannot continue to sustain ongoing losses from this business,” Wooworths chairman Gordon Cairns said.

Mr Cairns said Woolworths would take full ownership of the business, which “gives us access to the widest range of exit options”.

“This important decision allows Woolworths to focus its energy and resources on strengthening and executing its plans in our other businesses,” he said.

 

Good decision. Stick to their knitting, and they might consolidate and grow into the future.

 

Woolies

 

Who buys sinking ships these days?

Perhaps Anchorage can pick this dog up and float it in 3 years like a Dick Smith?

pinkboy

 

Anyone think WOW will go back up to $25 ?
If it gets back to that I will sell them.

How long do you think ?

 

IT's only down just under 80 cents a few minutes ago,and it may well go like BHP,with a deep short term incurable weakness in a falling price market,just like any investment ,plus there are various debates going on right now in different fast-bucks equities chat sites where some non holding share market guru"s trying to convince each other that they know what's happening,but myself i just can't see the price going anywhere but down short-term..imho..
http://www.asx.com.au/asxpdf/20160118/pdf/434fcyy3vzjc3l.pdf

 

I'm with Willair. Shorting this one at the moment

 

Might just pay off big time this morning in the first 20 minutes,that's why i keep all the old papers on financial matters from media people particularly the most unsuccessful ones,who never understand how quickly things change..

 

WOW vs AORD