Woolworths Ltd (WOW)

heartastack said:
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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Is that just from WW or from both big chains ?
 
Complimentary chart with lines below :-

17623_wow20160805.png


Note the 2 year downtrend, solid falling wedge pattern (bullish) with 3 tests of the resistance line and 4 tests of the support.

Baseline Support price level is in the vicinity of 20.30 - 20.70 a range that has been tested 5 times so far in 2016.

Breakout has occurred with volume IMHO due to fundamentals (restructure) overcoming the downtrend.

From a technical analysis perspective you rarely see a clearer buy signal than this.

As usual though - DYOR
 
One view: Why the Woolworths share price could hit $30 in quick time
http://www.fool.com.au/2016/08/18/why-the-woolworths-share-price-could-hit-30-in-quick-time/

Views on share price chart:
As mentioned, best fit downtrend resistance has been broken.
Monthly chart is now showing indecision following a July bullish engulfing candle made with strong volume.
The $23 - 24 level is difficult, maybe because this is a former support level, and WOW buyers are meeting willing sellers.
Good chance major low has been made, but not really confident.

Hold WOW

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WOW is in a trading halt today pending an announcement about Home Timber & Hardware most likely.

Annual report also due tomorrow (I think) so it could be a very interesting week for WOW. If we get a decent SP response it should confirm the previous downtrend is dead.
 
Reuters said:
* Woolworths update on Home Improvement Exit

* Has agreed three separate contracts to facilitate its exit from Home Improvement for estimated gross proceeds of $1.5 billion

* Masters will cease trading at all stores on or before 11 December 2016

* Transaction approved by Lowe's and Hydrox Holdings Pty Ltd (Hydrox), the joint venture company owned by Woolworths and Wdr Delaware Corporation (WDR)

* After estimated winddown costs, expects to receive proceeds of about $500 million prior to any shareholder payments

* Citi is acting as financial advisor to Woolworths

* Will work to find staff affected by these closures, jobs within the group and offer full redundancy where jobs are not available within the group

* Will begin discussions with masters' suppliers immediately about the transition timetable

* Metcash has indicated that it intends to exit two companyowned stores (Gungahlin And Launceston (Dowling St)) and one distribution centre (South Dandenong)

* Agreed three transactions to sell Home Improvement Business Hydrox to collective bidder group of GA Australia, Metcash & Home Consortium
Click to expand...

Should make for an interesting market reaction when they resume trading on the ASX tommorrow.
 
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