Woolworths Ltd (WOW)

Discussion in 'Stocks & Derivatives' started by finicky, Oct 8, 2014.

  1. SilverTounge15

    SilverTounge15 Active Member Silver Stacker

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    How do the dividends work? Paid yearly?? How much??
     
  2. finicky

    finicky Well-Known Member Silver Stacker

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    If you're looking for charting reasons to buy WOW for an investment they are thin on the ground so far. Gaps in the daily chart dating from 2 or 3 years back are pretty flimsy reasons by themselves as are early signs of divergence from momentum indicators (that is - momentum improving while chart price worsens).

    If you look at the daily chart you see fair chance of rally in progress, but if you look at monthly chart or even weekly chart - nothing for an investor to act on yet that I can see. Something for a lucky or shrewd trader maybe. If buying for an investment I'm preferring not to speculate on the exact bottom these days because it is too easy to be fooled. Better chances by sacrificing some gain by waiting for for significant confirmation that a likely lasting change is happening imo.

    Some trader might say he's picked it because of a 'gap' and divergence (after the event, not on the day he says he bought) but a trader is in and out and more likely to claim brief success. An investor should not follow a trader in as they are after different goals.
     
  3. silver kook

    silver kook Active Member

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    Yeah that was some trader guy posting on hotcopper. He sold already after holding for a few days. Other question. The dividends are 5 % fully franked paid every 6 months.
     
  4. SilverTounge15

    SilverTounge15 Active Member Silver Stacker

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    so 5% of the share price at the time??
    And what does fully franked mean??
     
  5. finicky

    finicky Well-Known Member Silver Stacker

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    Yield is a bit vague. Usually what is being talked about is the estimated yield for the current financial year - so the expected interim and final dividend added together and divided by the share price x 100 at the time of discussion. Franking means the dividend is credited as having already been taxed because it comes out of taxed company profits. 100% franked means that all the dividend is credited as having been taxed at the company rate. Note that franking does not mean you will have to pay no income tax yourself, just that a lot of the tax has already been prepaid by the company when it paid tax on its net profit. If you don't earn much income you will get all that 100% franked amount back as a refund after lodging your tax return.
     
  6. switchtronics

    switchtronics Active Member

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    [​IMG]

    Are people still thinking hold for this stock?
    With the dividend yield being high do we think investors will push up the price as safe stock and alot of dividend hunters about atm
     
  7. Abossy

    Abossy Active Member Silver Stacker

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    The dividend yield is high now, doesn't mean it's going to stay that way - earnings are likely to keep suffering.

    I worked at Woolworths for 6 years in their Fruit and Veg department while I was at school. That was over 10 years ago. I can tell you now the Woolworths of today is nothing like it was back then - it's an absolute disgrace these days. Back then the displays were awesome and there was so much more choice. I remember on Saturday's the managers running around like headless chooks keep the store in perfect condition as we always expected the regional managers to do random walk-ins. I remember how much pride people had working for WoolWorths - It was a great Australian company, that was back when Roger Corbet was at the helm.

    Now days every one I go into (including the store I used to work at) - fruit and veg lines are smaller, no more big displays. Service is crap. Stores are dirty. Too much emphasis on their own homebrand line.

    With Aldi's expansion and Coles resurgence they are quickling moving behind. Also their Master's stores are an expensive mess - I don't think they even turn a profit do they?
     
  8. switchtronics

    switchtronics Active Member

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    They dont predict a profit until possibly 2019. They have struggled with store layout, not enough profitable hardware skews and don't seem to create the same culture of the rival bunnings stores. I believe they are looking at a program masters 2.0 addressing these issues.
     
  9. phrenzy

    phrenzy In Memoriam - July 2017 Silver Stacker

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    My mother is partly managing my heart aunts money from the sale of her house to fund her nursing home expenses at the moment and the decision about whether or not to go with Woodworths for a portion of it is tricky. I've been watching it for s while now and although Woolworths is my supermarket of choice for investing I'm not so sure I like the group at this price (though much more now than at $30+). If there was a real upset in the economy and housing in particular then masters is basically a complete write off...
     
  10. finicky

    finicky Well-Known Member Silver Stacker

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    So that was a daily reversal that created a hammer candle today, encouraging but still nothing to write home about when looking at the weekly or monthly scale charts, jmo
    If you're looking for conservative investments, imo you don't go for something that is price volatile, as WOW is, you wait for strong signs of reversal of the downtrend.
    If you have a strong fundamental conviction that's different, but good luck sorting out those issues, lol.
     
  11. phrenzy

    phrenzy In Memoriam - July 2017 Silver Stacker

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    I have a strong risk aversion for this money and if I could get 4% on a term deposit I'd be keeping it out of the market and frankly I'm thinking it's worth eating a little capital depletion just to hold on to it now knowing it might be made up for because it will be dry powder later. Little sad that a company like WOW isn't a safe investment for a retiree like that though.
     
  12. Holdfast

    Holdfast Well-Known Member Silver Stacker

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  13. finicky

    finicky Well-Known Member Silver Stacker

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    Woolworths could be breaking to new 3 year lows today which is a somewhat poor look.
    The link is to a recent business channel 'your money your call' exchange with one of Montgomery Fund's analysts. He doesn't think WOW can regain its high margin and puts value in low $20s I think he said. Also interesting for comment on a few other stocks (like Challenger CGF).

    https://www.youtube.com/watch?v=EUul0B5EwaQ

    Someone at Motley has also recently attempted to value WOW:
    http://www.fool.com.au/2015/06/12/how-much-are-woolworths-limited-shares-really-worth/


    [imgz=http://forums.silverstackers.com/uploads/1893_wow.gif][​IMG][/imgz]
     
  14. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Woolworths hit by savage broker downgrades.

    Big broking houses including Morgan Stanley, UBS, and Deutsche Bank have slashed their target prices for Australia's biggest supermarket chain, citing falling sales and concerns that a turn-around will be far more expensive and take longer than anticipated.

    The downgrades sparked another sell-off in the stock this morning, with Woolworths tumbling 1.6 per cent to $26.36 by 10:30 am (AEST). (Yesterday)
    http://www.abc.net.au/news/2015-06-18/woolworths-hit-by-savage-broker-downgrades/6556024

    Closed yesterday 18 June 2015 @ $26.60
    http://www.asx.com.au/asx/research/company.do#!/WOW
     
  15. SilverDJ

    SilverDJ Well-Known Member

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    And the bargain hunters jump in, back up 29 cents this morning.
    I don't think there's a huge amount left in the downside, maybe $23-24?
     
  16. finicky

    finicky Well-Known Member Silver Stacker

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  17. billybob888

    billybob888 Well-Known Member Silver Stacker

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    Woolworth and wes farmers are both loosing market share to Aldi in their core business, i dont see how this would turn around anytime soon, perhaps thats whats causing the slide in the share price.
     
  18. hyphenated

    hyphenated Active Member

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    WOW seems to have been hammered for a number of reasons: The Masters debacle, which was exposed as an attempt to keep Wesfarmers on the floor and failed spectacularly, the loss of the supermarket advertising initiatives (Cheap Cheap was unimpressive) and being beaten by Coles for too many quarters. Aldi is just the cherry on the cake.

    If you think about it, paying the same amount for cornflakes in an urban Capital City megastore and in a rural tiddler is not logical. Sure, the rents are different. But the freight and transport costs are certainly not, and both Coles and Woolworths have had major negative effects on rural logistics chains for competitors. Aldi seems to be cherry picking, but is a long way from achieving the same reach - the question is whether it needs to.

    WOW seems to have some predatory activities in its arsenal, but I have to say that Coles seems to have a culture that invites internal warfare and sabotage, so my view is wait for the negative sentiment to have its maximum affect on the price, then buy on the dips.
     
  19. finicky

    finicky Well-Known Member Silver Stacker

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    SP was up today when I started this post. Still don't see it as an obvious long term buy based on monthly chart fwiw, subjective as that is.
    For candle watchers, I see it as a promising july positive candle engulfing june, but now the august candle is undoing the signal so far. So no confirmation unless there is a big turnaround in what remains of august.
    Weekly chart still looking ok with the big volume spikes being positive in june/july = accumulation? Good test will be if there is a rally b4 the $26 low is significantly broken.
    Still think it's more likely to go lower on balance, jmo
     
  20. Holdfast

    Holdfast Well-Known Member Silver Stacker

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