Woolworths Ltd (WOW)

my understanding is that woollies is spending profit to increase competitiveness. Wes down as they will have to follow suit to stop customers going to woollies.

said I was going to buy back into woollies at 25.00. I suspect market sentiment will drive this lower and will hold off.
 
I'm liking MTS as a potential takeover target from somewhere. WOW or WES would have a hard time convincing ASIC to approve it so maybe an overseas supermarket chain. I don't hold it
 
Bit glib, but last time WOW behaved like this, in late Feb where it gapped massively down, it continued to deteriorate 20% over another 7 months. Has undone the subsequent rally now anyway. Holder of WOW, but buying's not for me until confirmed change of direction.
 
hyphenated said:
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.
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My whole life up until 2010 I only ever shopped at Woolworths then one day in 2010 the stores refused to accept my Debit card as part of their new 'Debit Cards Policy' I left the trolley full of shopping at the checkout and walked out and have never been back to do a full grocery shop since. I quite enjoy shopping at Coles now and over the past 5.5 years have really grown to know the layout of their shops now and the odd one off days I do find myself having to run into a Woolworths to grab something doesn't entice me back either. I can't help but feel that this was the most devastating policy Woolworth's ever tried as I know many other people also left Woolworths that day and never came back.
 
I bought some WOW today @ 23.44

From a technical perspective it was a long (2 year) downtrend that looks oversold, found a decent base and it recently has bounced with a short covering rally that could signal the bottom is in.

From a fundamentals perspective there have been some restructuring which may be positive and also the recent strengthening of the AUD is likely to help profitability. Even though I am generally a bit of a bear on the broader market and economy and think we could be in for tough times, it seems a good defensive stock and could/should hold up ok even if we go into recession.....and if we go into money-printing mode (food stamps?) then there's actually some upside.

Anyone else holding?
 
Bugged Out, what indicates that shorts are being covered? Or is this just an assumption due to change in sentiment short term?

Cheers,
 
billybob888 said:
Im not loyal to particular supermarket chains, i stay loyal to value for money
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I stay loyal to convenience.
I'm not going to drive a few extra miles to save a few bucks on the groceries.
 
Sid said:
Bugged Out, what indicates that shorts are being covered? Or is this just an assumption due to change in sentiment short term?
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Admittedly it is a bit of an assumption/opinion regarding the sharpness and volume of the recent bounce. But it could probably be backed up by looking at open interest. Unfortunately I am not that diligent, nor do I have that info.
 
BuggedOut said:
Admittedly it is a bit of an assumption/opinion regarding the sharpness and volume of the recent bounce. But it could probably be backed up by looking at open interest. Unfortunately I am not that diligent, nor do I have that info.
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Yeah all good I thought there may be something I was missing!
 
too much going on to be sitting in this with the grandpa, grandma holders, the AGM would be like a wake, cups of tea and cucumber sandwiches.
 
BuggedOut said:
I bought some WOW today @ 23.44

From a technical perspective it was a long (2 year) downtrend that looks oversold, found a decent base and it recently has bounced with a short covering rally that could signal the bottom is in.

From a fundamentals perspective there have been some restructuring which may be positive and also the recent strengthening of the AUD is likely to help profitability. Even though I am generally a bit of a bear on the broader market and economy and think we could be in for tough times, it seems a good defensive stock and could/should hold up ok even if we go into recession.....and if we go into money-printing mode (food stamps?) then there's actually some upside.

Anyone else holding?
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Thanks for the heads up. Wasn't watching but just added to watch list.

If they can get their earnings back to the long term trend it is selling around a PE of 10

Share price is back to where it was 10 years ago
 
I work for a supplier to WW. Absolutely shocking behavior on all fronts and it's getting worse. Won't be getting my money.
 
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