# COL - Coles Group



## Joe Blow (21 February 2007)

Morning ladies and gentlemen.

This thread is for the continued discussion of  CGJ - Coles Group, previously known as CML - Coles Myer.

When a company changes both its name and ASX code, it is the custom here at ASF to close the old thread and direct all discussion to the new thread. The old thread is kept for reference.

For those looking for the discussion when the company was CML - Coles Myer, please visit this thread: https://www.aussiestockforums.com/forums/showthread.php?t=4265

Thank you!


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## Basilisk (23 February 2007)

Interesting news today.


http://www.news.com.au/business/story/0,23636,21273671-462,00.html

Increased more than  $1.25 so far this morning.


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## alankew (23 February 2007)

Sounds like bad news but as previously suggested bad results could be the catalyst for a renewed takeover


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## alankew (24 February 2007)

Can anyone remember what figure was talked about as the expected offer for Coles.I think $17 haseen mentioned but cant remember where.If you have a link that would be helpful.Thanks


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## Glenhaven (3 April 2007)

Westfarmers indicative bid for coles at $16.47/share.

SYDNEY (Dow Jones)--The A$19.7 billion bid for Australia's Coles Group Ltd. (CGJ.AU) from a consortium including Wesfarmers Ltd. (WES.AU) and private equity looks to be a reasonable price, said an institutional shareholder and an analyst Tuesday. 

However, they said other interested parties could well emerge with a better offer, although Wesfarmers' late Monday raid on the retailer may make a friendly bid difficult for rivals. 

"My initial reaction is it seems like a reasonable price, but I'd need to have a look at the details," said Paul Xiradis, director of equities at Ausbil Dexia, which holds shares in Coles. 

"But I suspect there are others which could also come over the top of them with a higher price." 

Unveiling the biggest takeover bid in Australian history, Wesfarmers late Tuesday offered A$16.47 a share for Coles. Wesfarmers, a diversified conglomerate which secured an 11.3% stake in Coles in a Monday share raid, said under the plan its consortium partners Macquarie Bank Ltd., and buyout funds Permira and Pacific Equity Partners would own Coles supermarkets business. Wesfarmers would take control of its Officeworks and Target divisions. 

The raid pits Wesfarmers against a consortium led by Kohlberg Kravis Roberts & Co. and including five other global buyout funds in the battle for Coles. Coles knocked back a revised A$15.25 a share from KKR in October last year but put the company up for sale five months later after issuing a profit downgrade and revealing lagging supermarket sales. 

Grant Saligari, an analyst at Commonwealth Securities, said the Wesfarmers bid is "certainly within the A$16-A$17 range we'd been looking at." Coles shares, now subject to a trading halt, last traded at A$16.11. 

Wesfarmers' raid on Coles could make it difficult for KKR to now move forward with a friendly bid. 

"Whether KKR responds or not will probably depend on the response from the Coles board," said Saligari. 

"KKR has indicated in the past that it would want to do due diligence and wanted a friendly approach. With Wesfarmers owning 11% of the stock, that could make that less likely. A few things are up in the air at the moment." 

   -By Rebecca Thurlow, Dow Jones Newswires; 61-2-8235-2959; rebecca.thurlow@dowjones.com 
   -Edited by Ian Pemberton 


(END) Dow Jones Newswires 

April 03, 2007 05:29 ET (09:29 GMT)


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## Crash (4 April 2007)

I see that CGJ is at 16.92 when the Wesfarmers offer is 16.47?  So what gives?  Why would anyone take the Wesfarmers offer - assuming that the price held at 16.92 when the actual offer came out?  And who would be buying them at 16.92?


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## Lert (4 April 2007)

I think the 16.47 figure is ex dividend.. Sold mine for 16.95 this morning just to be out of it after waiting so long for something to happen..


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## Glenhaven (4 April 2007)

Speculators buying looking for another bid, probably from KKR if it comes.

I personally consider it does not have much left in it. Note thst if another bid does not evenuate then it will fall back to $16.47 or lower.


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## ROE (10 April 2007)

this is crazy, this is a dog company a couple months ago and at the current price it's on the same par as Woolies in term of PE ratio.

If they cant turn Coles around this is one hell of a big mistake for who ever taking them on at $16.50 a pop.

Australian market is not that great and there isn't much room left for expanding unless you go oversea, and heading oversea
you will come up against the veteran of retails like Wal-Mart and Tesco.

I'm stay the hell away from all this craziness for now.


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## michael_selway (10 April 2007)

ROE said:


> this is crazy, this is a dog company a couple months ago and at the current price it's on the same par as Woolies in term of PE ratio.
> 
> If they cant turn Coles around this is one hell of a big mistake for who ever taking them on at $16.50 a pop.
> 
> ...





Yeah ist worth about $10 max

*Earnings and Dividends Forecast (cents per share) 
2006 2007 2008 2009 
EPS 62.5 65.2 73.6 80.1 
DPS 42.0 42.3 53.0 54.5 

EPS(c) PE Growth 
Year Ending 30-07-07 65.2 26.1 4.3% 
Year Ending 30-07-08 73.6 23.1 12.9% *

thx

MS


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## CanOz (10 April 2007)

The scary thing is its happening everywhere....too much money and no home I reckon....Oh well, its an opportunity.

Cheers,


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## noirua (11 April 2007)

Bought a few shares in CGJ on rumours that the UK's Tesco are poised to make a bid. This was reported in the London Evening Standard and they state that "insiders quoted in the Australian media and the Wallstreet Journal say Tesco executives have signed up to take part in the bidding.  Coles will open their books to suitors today in hopes of attracting a higher bid."


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## noirua (11 April 2007)

If you're onboard this one we should have quite a bit of fun ahead. Coles value may not look that much, but the companies potential may make it worth at least 15% more than Wesfarmers think, imho.


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## noirua (12 April 2007)

Still on the way up and the consortium may bid $20, imho.


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## ROE (14 April 2007)

This is where it's getting dangerous, speculating hoping for bigger fool to pay higher price ....this is where I exit


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## noirua (15 April 2007)

The value of Coles at present is not really that relevant, I think. Companies, the likes of Wal Mart and Tesco are high pressure outfits that keep margins slim and benefit shareholders and consumers. They are also patient and will always make good of every enterprise they buy-into.

Difficult to see, myself, the likely profitability a few years down the line. Is it double, treble or quadruple. Any of these make Coles an excellent buy.

My view, and entirely my view, $20 a share MAY prove very cheap in the long run.


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## noirua (16 April 2007)

"Stakes Rise in Coles' Bid". An announcement/Video to be made on this Link fairly shortly:  http://www.abc.net.au/insidebusiness/content/2007/s1897572.htm


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## ROE (16 April 2007)

noirua said:


> The value of Coles at present is not really that relevant, I think. Companies, the likes of Wal Mart and Tesco are high pressure outfits that keep margins slim and benefit shareholders and consumers. They are also patient and will always make good of every enterprise they buy-into.
> 
> Difficult to see, myself, the likely profitability a few years down the line. Is it double, treble or quadruple. Any of these make Coles an excellent buy.
> 
> My view, and entirely my view, $20 a share MAY prove very cheap in the long run.




According to the man that run the most successful retail business in Australia and in the process killing Coles, Coles is way too high of a price.
http://www.news.com.au/business/story/0,23636,21563737-462,00.html

I can sell you a million shares in Coles for $18 if you want to buy  it's still cheaper than your $20 a shares price tag


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## noirua (16 April 2007)

ROE said:


> According to the man that run the most successful retail business in Australia and in the process killing Coles, Coles is way too high of a price.
> http://www.news.com.au/business/story/0,23636,21563737-462,00.html
> 
> I can sell you a million shares in Coles for $18 if you want to buy  it's still cheaper than your $20 a shares price tag




Hi, I've been in stores in the US and UK and Coles just does not cut the mustard. Large Tesco SuperStores sell virtually everything you can think of, and operate 24 hours a day. Tesco and others open smaller stores in petrol stations and virtually everywhere you can think of.  Downside is that lots of other stores close down.  I bought enough stock last week, thanks


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## noirua (18 April 2007)

Tesco came up with Annual Profits at £2.55 billion ( $6.13 billion ). Encouraging reports in London Evening Standard with the Coles Group bid expectations in the wings.


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## noirua (11 May 2007)

Information in the London Evening Standard suggests that Tesco may no longer be interested in Coles Group.

Trading around $17.80, the number of interested parties should maintain interest for sometime.


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## Gordon (3 June 2007)

i notice that coles have dropped to $16.7 over the last few days. Anyone think it could be a good time to enter back in - i havnt seen any news recently.


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## reece55 (10 June 2007)

Isn't this just a complete waste of shareholder funds.....

Coles is so desperate to get a bid over the line that it is offering to pay $10 Mil towards a consortium's due diligence.... 

Honestly, the morale of the management team in this group must be so down at the moment, what would be your incentive to improve the situation in the knowledge that your job is probably/maybe gone in the foreseeable future....

No wonder the business is under performing...........

http://www.theage.com.au/news/busin...ers-for-bidders/2007/06/08/1181089328861.html

Cheers


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## reece55 (2 July 2007)

And the price is in....

WES will pay $4.00 and 0.2843 WES shares for each CGJ share. 

That would value Coles at 17.00, or 17.25 if you include the final dividend.

After such a drawn out process, it's lucky I think that the CGJ board got away so easily. Really, their underperformance created performance - what an upside down world we live in where Fletcher completely destroys an iconic Australian company and yet he will walk away with plenty in his back pocket.......

Cheers


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## Broadside (2 July 2007)

exactly!  the poor management and underperformance was what made it attractive, now Fletcher will probably walk away with millions along with the board.  Too bad shareholders didn't get offered a deal last year, then they could have walked away and reinvested in the market, up 28% last FY.


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## Prem (2 July 2007)

How will the takeover bid  from wesfarmers affect coles's share price? 

(I am only new so be nice)



Thanks in advance


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## PZ99 (21 November 2018)

@Joe Blow :  CGI is now COL - COLES GROUP LIMITED 

SYDNEY--Australia's newest-listed company, grocery chain Coles Group Ltd. (COL.AU), began trading in the middle of its expected range on Wednesday in the largest Australian corporate spin off on record.

The former unit of conglomerate Wesfarmers Ltd. (WES.AU) is valued at 16.9 billion Australian dollars (US$12.2 billion) based on Coles's recent share price of A$12.70, after shares began trading on the Australian Securities Exchange. Shares opened at A$12.49 on a deferred settlement basis and dipped as low as A$12.30 before rising.

The listing is bigger than South32 Ltd. (S32.AU), which was spun out of BHP Group (BHP.AU) in 2015. South32 was valued at about US$9.4 billion and previously was the largest spin off in Australia, according to market-data firm Dealogic.

For Wesfarmers, which bought Coles in 2007 for more than A$19 billion, listing the grocery chain is in line with its recent strategy of shedding slower-growth businesses to free up capital for buybacks, dividends or other acquisitions. The strategy isn't a sure bet, however, given that growth has slowed at hardware chain and star performer Bunnings. The company also misfired on its purchase of the Homebase hardware chain in the U.K.

Wesfarmers shareholders voted last week to approve the spin off. The conglomerate planned to retain a 15% stake in Coles and says it has pumped some A$9 billion of investment into the grocery chain during its ownership.

Nonetheless, some investors said Coles will need to spend cash on store refurbishment and new distribution centers in the coming years to compete effectively with Woolworths. Daniel Mueller, a portfolio manager at Vertium Asset Management, which isn't a Wesfarmers shareholder, said the balance sheet at Coles "may not be as strong in five years" at it appears today.

"If you're an investor more interested in potential capital management and less gearing, less financial risk, Woolworths stands out to Coles," Mr. Mueller said. But he didn't rule out investing in Coles if the share price dropped low enough.


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## notting (21 November 2018)

They bought it for 22B (purchased 13% before the 19B takeover) spent 9B, making the total cost of the asset 31B which they are now selling for 16.5B Wonder what the total profit after tax was for Coles during the time they owned it? 1B?


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## Ferret (21 November 2018)

notting said:


> They bought it for 22B (purchased 13% before the 19B takeover) spent 9B, making the total cost of the asset 31B which they are now selling for 16.5B Wonder what the total profit after tax was for Coles during the time they owned it? 1B?



Interesting figures.  They also got Officeworks, Kmart and Target when they bought Coles.  I wonder what their value is?


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## sptrawler (21 November 2018)

I tend to wonder, if it wouldn't be better to offload COL and top up WES?
Coles are in a very competitive space, that is getting somewhat crowded.
Whereas Wes is cashed up at a good time, as long as they spend wisely.


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## notting (21 November 2018)

Ferret said:


> Interesting figures.  They also got Officeworks, Kmart and Target when they bought Coles.  I wonder what their value is?



Their assumed as part of the Coles package.


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## luutzu (21 November 2018)

sptrawler said:


> I tend to wonder, if it wouldn't be better to offload COL and top up WES?
> Coles are in a very competitive space, that is getting somewhat crowded.
> Whereas Wes is cashed up at a good time, as long as they spend wisely.




I haven't looked but I think you might be right. Best to not buy stuff capable, alright, sometime capable, people like those at WES offload.


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## Garpal Gumnut (21 November 2018)

Some interest for the few hours it traded. Could go up. Could go down.


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## sptrawler (21 November 2018)

luutzu said:


> I haven't looked but I think you might be right. Best to not buy stuff capable, alright, sometime capable, people like those at WES offload.



I'm not saying Coles aren't any good, just that it is a very competitive space they trade in, also I have exposure to WOW.
I already explained why I personally prefer WOW, and I would keep COL if I thought there was plenty of room in the market. 
But I think WES have time/timing and money on their side.
Just my opinion and mostly baseless.

I do hold WES, COL and WOW.


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## luutzu (21 November 2018)

sptrawler said:


> I'm not saying Coles aren't any good, just that it is a very competitive space they trade in, also I have exposure to WOW.
> I already explained why I personally prefer WOW, and I would keep COL if I thought there was plenty of room in the market.
> But I think WES have time/timing and money on their side.
> Just my opinion and mostly baseless.
> ...




Hard to go wrong owning the nation's duopoly.


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## sptrawler (21 November 2018)

luutzu said:


> Hard to go wrong owning the nation's duopoly.



It is all a mater of size, the amount I have, doesn't matter.


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## Smurf1976 (21 November 2018)

luutzu said:


> Hard to go wrong owning the nation's duopoly.



I do wonder if that is finally cracking though?

Aldi seem to be expanding quickly enough to have created enemies. In other words, people getting worried about them.

Then there's what seems to be a broader societal trend away from "big corporate" stuff toward more boutique offerings which by their very nature neither Woolworths or Coles do.

Then things like Kaufland wanting to enter the market.

Individually they're not massive changes but collectively they're significant I would think.


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## sptrawler (21 November 2018)

I agree with you smurph, I think there will only be space for one big supermarket chain, heads or tails?


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## bigdog (6 February 2019)

I have not bought Coles fuel for several years because they were always dearer and the first to increase the price of fuel.

Well today they announced

"Coles said that earnings from its Express division would fall almost 70 per cent this year"

"fuel sale volumes in the first half of this financial year were down to 62 million litres a week, compared with 74 million a week last year."

https://www.smh.com.au/business/com...-cuts-as-earnings-plunge-20190206-p50w07.html

*Coles Express signals petrol price cuts as earnings plunge*
*By Patrick Hatch and Cole Latimer*
6 February 2019 — 2:22pm

Petrol prices are set to fall at Coles Express services stations under a new deal with its fuel supplier which it hopes will enable it to compete more sharply with rivals BP and Caltex.

The supermarket giant's fuel sales have been falling because its pump prices were too high under its agreement with Viva Energy, and the Australian Competition and Consumer Commission has signalled it out as the most expensive fuel retailer in the country.

On Wednesday, Coles said that earnings from its Express division would fall almost 70 per cent this year and revealed it had signed a new agreement with Viva locking in the partnership to 2029.

Under the new deal, Viva will operate and set prices at the bowser. Coles will take a commission on each litre of petrol Viva sells, and run the convenience store operations at each service station.

Viva will also pay Coles $137 million under the deal.

Underscoring the need for change in the business, Coles released a trading update on Wednesday showing that average fuel sale volumes in the first half of this financial year were down to 62 million litres a week, compared with 74 million a week last year.

It forecast earnings from the Coles Express business would fall from $164 million last year to $50 million this year, which equates to a drop in earnings of about 7 per cent within the Coles business as a whole.

Coles Express chief executive Alister Jordan said that having each side of the partnership focusing on their speciality would make them more competitive.

“It allows us to rebuild the Coles Express business with Viva, where both sides are highly aligned and incentivised to grow the overall alliance,” Mr Jordan said.

Viva Energy chief executive Scott Wyatt said by shifting the control of the pump from Coles back to Viva the fuel price would likely drop.

“Historically, Coles set the retail pump price but we felt in order to grow our business we had to have control over how the pump price is set,” Mr Wyatt said.

“Part of this deal is focusing on improving our fuel offer and improving the competitiveness of pricing.”

He said the company was aiming at a modest increase in fuel sales, rising from the average of 64.2 million litres a week sold last year to between 70 and 75 million litres a week.

“This is a very significant milestone for the company,” Mr Wyatt said.

“We’ve taken the opportunity to reset the relationship and recognise things have changed.”

Loyalty scheme benefits such as earning Flybuys points on fuel sales and the 4¢ a litre shopper docket discount would continue, Coles said.

Viva’s shares were up 13 per cent to $2.17 by 1.30pm, while Coles, which was spun-off from Wesfarmers in November, was down 2.2 per cent to $12.45.


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## sptrawler (26 March 2019)

Coles is going to automate, its home delivery selection process, it could be a game changer. IMO
I always said to Mrs Trawler, it seems inefficient to pay night fillers to stack the shelves, and then pay home delivery pickers to empty them.
I still think COL could be a takeover target, in the longer term, ready made for a big U.S or European mega chain. Just my opinion.
By the way, I do have a small holding, from the demerger.

http://www.thebull.com.au/articles/a/80976-coles'-$150m-deal-to-double-deliveries.html


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## Miner (20 June 2019)

Hmm - last posting was March 26!
Any way, I have repeated this posting on WES as well.

WES and COL holders
I thought to share the snippet from Motley Fool Share Advisor - the following are their reported performance following recommendation in 2015 (I have not checked the calculation) and today 20 June they have said SELL both the shares.
Incidentally at the COB today 20/6, both WES and COL closed with increased price.

Wesfarmers Limited and COLESGROUP DEF SET  ASX:WES ASX:COL 26/06/15 BUY N/A  N/A  53.2% 43.8%

_"Today we have decided to close out a recommendation we made back in 2015 by selling *Wesfarmers* (ASX:WES) and *Coles* (ASX:COL).

As you’ll likely know, Coles was spun out of Wesfarmers, giving us a (smaller) parent and a newly listed child. We sat on them both while we waited for the dust to settle, but now we know enough.

And, unfortunately, there’s a twist in the tale. Read on, Fool!

Coles was always a curious case.

The business is arguably one of the most mature businesses on the ASX. Despite some newer players, such as Aldi, taking market share over the past few years, the supermarket duopoly between Coles and *Woolworths* (ASX:WOW) remains strong with both players still owning around 30% of the market each according to Roy Morgan." _​D*isclaimer - I do hold COL and always mix wine and salt with MF recommendations. DYOR*


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## fiftyeight (17 March 2020)

Coles at ATH.....in this market???

What am I missing?

1) My initial thought was that the average spend will take a hit in the medium term. This may be the case or the less well off customer, but is this countered by people not going out and therefore spending more money on their home cooking and liquorland, hence the rise in price?  

2) Lets say my initial thoughts were correct and the average spend does decrease and Coles reduces divs. It is plausible relative to other companies, the div decrease will be smaller than companies. Therefore for those who need/want to park money somewhere Coles is the least worst option at this point, hence the rise in price.

Case 1 = don't short
Case 2 = don't short yet

3) I am completely off the mark and there are factors that my novice brain is not even considering


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## sptrawler (17 March 2020)

fiftyeight said:


> Coles at ATH.....in this market???
> 
> What am I missing?



People still have to eat, people still use their phones, people still need their rubbish picked up.
COL, WOW, TLS, CWY.
Why would their earnings change?

Just my thoughts, I do hold.


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## fiftyeight (17 March 2020)

sptrawler said:


> People still have to eat, people still use their phones, people still need their rubbish picked up.
> COL, WOW, TLS, CWY.
> Why would their earnings change?
> 
> Just my thoughts, I do hold.




Yeah I get that, but personally and speaking to people within my circles, if **** really hit the fan, there is a lot of room to cut spending in the grocery bill if required.

Maybe this spending cut wont be required as entertainment spending will decrease instead, I guess it depends on how bad things get?


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## fiftyeight (17 March 2020)

WOW dropped over 30% during the GFC, what is different this time? We have a potential credit crunch AND a pandemic


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## InsvestoBoy (17 March 2020)

fiftyeight said:


> Coles at ATH.....in this market???
> 
> What am I missing?




You're reading too much into a small move in a crazy market.

Maybe some big fund was short and had to liquidate all their positions?

Maybe some insto is looking to put fresh money to work in Consumer Staples?

Maybe this coronavirus thing will keep rolling and COL will be down 50% in a few weeks as overseas funds liquidate all their ASX holdings?


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## sptrawler (17 March 2020)

fiftyeight said:


> Yeah I get that, but personally and speaking to people within my circles, if **** really hit the fan, there is a lot of room to cut spending in the grocery bill if required.
> 
> Maybe this spending cut wont be required as entertainment spending will decrease instead, I guess it depends on how bad things get?



People will give up a lot of things before food, the more worried they get, the more comfort food they eat. Human nature, I'm not saying it wont get hit, just that if it gets hit most others will clear the fence.
Just my opinion.


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## fiftyeight (17 March 2020)

InsvestoBoy said:


> You're reading too much into a small move in a crazy market.
> 
> Maybe some big fund was short and had to liquidate all their positions?
> 
> ...




I am more intrigued by the lack of move in a crazy market, not so much that it has ticked up


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## Dona Ferentes (17 March 2020)

Dropped this graphic into
https://www.aussiestockforums.com/threads/good-asx-listed-stocks-to-buy.35272/page-2#post-1062015

Coles and Woolies versus the index. But asked the question; defensive or consumption brought forward?


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## sptrawler (17 March 2020)

Dona Ferentes said:


> Coles and Woolies versus the index. But asked the question; defensive or consumption brought forward?



There would have to be a lot of that, but when the scare is over, the baked beans will take years to be eaten, people will still buy their 'normal' food IMO.


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## fiftyeight (17 March 2020)

Maybe ill take a punt with some play money and see if I can buy some out of money puts. Something like a strike of $13.25 to expire in May. This is either gonna tank or not.

......

Wow there is like no liquidity, like none. If I throw in a random bid of like $0.05 AND it was taken AND it went in my favour, would I even be able to close it out? 

This might be a live lesson in 'how not to learn options'


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## InsvestoBoy (17 March 2020)

fiftyeight said:


> Wow there is like no liquidity, like none. If I throw in a random bid of like $0.05 AND it was taken AND it went in my favour, would I even be able to close it out?




Are you looking now for liquidity on ASX options?

Check back during market hours.

In the worst case you can always exercise and become "short" then close your short by buying at the market price.


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## fiftyeight (17 March 2020)

InsvestoBoy said:


> Are you looking now for liquidity on ASX options?
> 
> Check back during market hours.
> 
> In the worst case you can always exercise and become "short" then close your short by buying at the market price.




I was looking at open interest, and the lack of it across almost all strikes and months. Maybe a poor proxy for volume?

Not sure I would have the bankroll to fund exercising the put if I got enough contracts on haha


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## Ferret (17 March 2020)

Sold mine today.  I get that it is defensive, but all-time highs makes no sense to me.
I think the strength is a reaction to the hoarding and is not going to last.


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## fiftyeight (21 March 2020)

Well maybe this shows my lack of confidence in this trade and lack of options knowledge.

My option order went through on Wed but I had redic low price, so was not filled. The order was purged over night and when I went to put a more reasonable one in, for some reason it was not processed never hit the market??? Waiting for a reply why.

On Friday I was using IG to try and get short with a CFD. Crazy busy at home, I kept trying to get sell at a good price and kept missing it. I have never been a d!ck for a t!ck before, normally the opposite and I just pile in at market. Not sure if this is the volatility, shorting a rising stock, that I dont short often or I am just more risk averse at the moment and dont feel like losing money even if it is the play account.


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## fiftyeight (24 March 2020)

After being a d!ck for a tick on Friday and missing getting short $17.50, I scaled right back and just placed a small token trade yesterday, more to keep my opinions honest tbh. Sold 100 at $15.76, grrrrr should be short $17.50+

Immediately have trade regret, why short the only company that will stay open during a lock down 

My 'how NOT learn options' is also going well. With no bids or offers, my orders not hitting the market who knows what is going on, I guess someone does but it is not me. I learn best by making mistakes unfortunately so, my fist lil options trade is underway. 

I have been mostly reading up on selling puts to accumulate long term holdings or buying long dated calls deep out of the money. First trade executed, buys puts 2 months from expiry......plan is going well so far.


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## fiftyeight (28 March 2020)

Had to post, maybe the only time it is in profit.

However as there is no action at all, no idea how they came up with market price. I suspect if I did try and close I would NOT be filled at anything like $0.215


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## Dona Ferentes (28 March 2020)

Any offer they can't refuse?



> Coles has extended a lifeline to wine, craft beer and spirit makers by offering to buy stock that would otherwise have been destined for the restaurant and hotel trade. Beer, spirits and wine makers are facing a cashflow crisis as hotels, bars and clubs around Australia are forced to close and restaurants are suffering a sharp drop in bookings. Many have shut their doors to all but takeaway customers.





> Coles has taken out a series of advertisements offering to buy product from wine, craft beer and spirit makers in NSW and Victoria who would not normally sell through its Liquorland, First Choice, Liquor Market and Vintage Cellars chains


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## basilio (30 March 2020)

I think COLES like all supermarkets will hold and increase their profits through the corona virus. There won't be as many specials.  They will bring in more non food items becasue they can. There will still be enough money for people to feed themselves and because people can't spend on much else eating at home will hold or increase.

Alcohol sales will rise with the collapse of hotel trading. It will be good defensive stock to hold for the next few months


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## Trav. (31 March 2020)

As can be seen below announcement out this morning and SP dipped accordingly. I expect it to bounce back but timing of sale is not the best for COL


----------



## sptrawler (31 March 2020)

Trav. said:


> As can be seen below announcement out this morning and SP dipped accordingly. I expect it to bounce back but timing of sale is not the best for COL



WES is getting one hell of a war chest Trav, I wonder who they are circling?


----------



## fiftyeight (7 April 2020)

When COL pops up out of the Keltner Channel it is getting sold straight back down in to it. When it pops out to the down side it is more rounded.


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## fiftyeight (5 May 2020)

fiftyeight said:


> After being a d!ck for a tick on Friday and missing getting short $17.50, I scaled right back and just placed a small token trade yesterday, more to keep my opinions honest tbh. Sold 100 at $15.76, grrrrr should be short $17.50+
> 
> Immediately have trade regret, why short the only company that will stay open during a lock down
> 
> ...




Closed this out yesterday for a tiny tiny profit on the CFD and will let put expire worthless.

Not ideal but not my mostly costly mistake.

On a positive, I did enjoy having to get my ideas (even if they were wrong) down in to words and is something I will do more of


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## Dona Ferentes (29 June 2020)

The whole idea of *The Last Mile *for deliveries is interesting, with multiple factors such as technology, Covid, gig economy in play, as well as overseas players trying to push into the local scene.

The Last Mile can, of course, be from a factory anywhere in the world, with specifically sourced product (think a car with unique features, or _built to specs_ windows) or food meal delivery from a restaurant via an app, or in the supermarkets' case, it can be collecting the weekly shopping that has flowed from producer to supplier to distribution centre to local shop. 

Coles, and Woolies are going in big with convenience, looking to build up home delivery as part of their offerings. How they are going about this is interesting as the approaches and business models are different. Metcash isn't able to compete and the IGA set-up is, as the name implies, Independent, which introduces a raft of challenges. Aldi doesn't seem to be pursuing it either.

In essence, *Coles *is going for big automated distribution centres that dispatch groceries around the country. Coles is getting its technology from the fast-growing UK online retailer, Ocado, which is also in the business of supplying robots to other retailers. Ocado will own and operate Coles’ distribution centres – one in Sydney and one in Melbourne – and Coles will pay it a fee to pack the groceries and load the bags on Coles’ trucks.

*Woolworths *will have hundreds of “micro-fulfilment centres” (MFCs) attached to its existing stores.Woolworths is testing the gear of Takeoff Technology, a US start-up that is specialising in building robotic MFCs for supermarket chains.  Woolworths is buying the equipment from Takeoff and will do the fit-out and own the space, so it will capture all the margin, with the US firm paid only to do maintenance and software updates in the robots.

_- implications? Many. Trucks on the road, growth of big warehouse centres on outskirts. Job losses. Lots more cardboard boxes in rubbish bins._


----------



## greggles (29 June 2020)

Dona Ferentes said:


> _- implications? Many. Trucks on the road, growth of big warehouse centres on outskirts. Job losses. Lots more cardboard boxes in rubbish bins._




Robots, job losses, more cost cutting. Rinse and repeat. Labour continues to be the highest cost for companies like Coles and Woolworths. Automatic checkouts were just the beginning. The move to home deliveries will be largely automated to make the whole service economically viable.

How much are people prepared to pay to have their groceries home delivered?

Cardboard boxes will be imported from Asia and disposed of here. More rubbish, fewer jobs. There might be more jobs in the rubbish disposal and transport sectors but overall I think jobs will be cut where possible. Full time positions will be replaced by casual and part time positions.


----------



## finicky (29 June 2020)

It's occurred to me that Brickworks *(BKW)* might be a good 'play' on this one day, at an even lower price. Maybe Goodman (*GMG*) too?

BKW:

After they've used their fringe urban land or when it otherwise becomes surplus they sometimes hive it off into residential blocks but otherwise the land is rezoned industrial and developed through a joint venture Industrial Property Trust that is a 50/50% partnership between Brickworks and Goodman Industrial Trust. After including debt, Brickworks 50% share of the Property Trust has an equity value of $633 million.

In addition to the Property Trust, the Company holds around 3,750 hectares of operational land and 370 hectares of development land. The company also holds 2,400 hectares of land in the U.S.

In this AFR article from Mar 2019, *Brickworks CEO, Lindsay Partridge* was interviewed:

 " ... Partridge has been able to tap into an industrial property shift from manufacturing to distribution, where factories are out and warehouses are in. As the internet changes commerce, demand for warehouses is soaring and changing.

An example of these changes is provided by *Coles’ new state-of-the-art automated warehouses*, one of which will be housed within the 89-hectare Oakdale Industrial Estate in Horsley Park, which was sold into the Brickworks Goodman Joint Venture Industrial Trust in 2016.

Notably, the facility is 10 storeys high, which Partridge says neatly illustrates how the requirements of warehouse owners are changing. This trend should be very good for Brickworks.

“We are going to get a lot more distribution capacity per square metre of land,” he says, adding the company’s existing warehouse holdings may well end up being redeveloped over time.

Could Partridge ever imagine shuttering the group’s remaining Australian brick-making plans and telling his board he can make more money in property development?
Partridge says he occasionally makes this joke to his factory managers, but he hopes the day never comes.
“That’s a horrifying thought. I’ve been making bricks all my life.”"


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## Dona Ferentes (7 July 2020)

COL back at new highs; one of the 'beneficiaries' of the pandemic More than likely it won't disappoint in August, as long as costs are seen to be kept under control; dividend could have a little bit extra?





Earnings per Share​


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## Dona Ferentes (8 July 2020)

finicky said:


> An example of these changes is provided by *Coles’ new state-of-the-art automated warehouses*, one of which will be housed within the 89-hectare Oakdale Industrial Estate in Horsley Park, which was sold into the Brickworks Goodman Joint Venture Industrial Trust in 2016.
> 
> Notably, the facility is 10 storeys high, which Partridge says neatly illustrates how the requirements of warehouse owners are changing.



Ah, the quest for efficiency may have unforeseen consequences. (In other words, it is frightening not to have redundancy built in). Apart from its dependency of the software and hardware, all that machinery, funneling everything through on location leaves a vulnerability (in this case, Covid).



> Two weeks ago the Coles chilled distribution centre in the outer Melbourne suburb of Laverton was hit with a potential crisis when one of its 600 staff tested positive for COVID-19. The centre, which distributes chilled and fresh food through Victoria and as far north as Deniliquin in NSW, was hit with massive staff shortfalls as staff called in sick and the normal workforce of 600 fell down to around 50.





> The centre is now back to normal and on Monday night Coles was able to end all restrictions on product sales .... At its worst the centre was *five days behind and its stores faced massive shortages*, with fears supplies would be as low as 10 per cent on the shelves by last Friday.





> But the recovery effort highlights how business and government worked together to keep operations moving. In this case, daily meetings including National COVID Coordination Commission (NCCC) member Paul Little, the head of Victoria's Jobs Department Simon Phemister and Coles supply chain operations boss Tony O'Toole were held to ensure supplies kept up.





> One of Little's tasks was to talk with the folk at Linfox and Toll, who are existing logistics suppliers, to ensure staff could be diverted to Laverton to help the process. Unions and health officials were on the job, and the process was a team effort which included where possible bypassing the distribution centre altogether, with suppliers like Lion and milk processor Saputo supplying the stores directly.
> The DCs are lot more complicated than the old days, with sophisticated bar code readers and high lift reach trucks (three-storey forklifts) needed to work their way around.


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## sptrawler (8 July 2020)

I was talking to one of the isle pickers this morning and asked if she has seen a huge increase in online orders.
The lady said there was a massive spike at the beginning of the virus, then a leveling at a higher number during the lockdown, now she said it is back to similar numbers as pre virus.
So maybe the general trend hasn't held up and people still prefer to actually shop. By the way that is Perth W.A.


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## Dona Ferentes (8 July 2020)

greggles said:


> Robots, job losses, more cost cutting. Rinse and repeat. Labour continues to be the highest cost for companies like Coles and Woolworths.  Full time positions will be replaced by casual and part time positions.



Just check out a Canadian company Workjam.  https://www.workjam.com/
_*Take Control of your Frontline Employees’ Digital Experience Through a Single Platform*_
"_Workjam's Digital Workplace technology is designed to bring your non-desk workforce together through agile scheduling, transformative communication, experiential learning, and tailored recognition seamlessly through a single user experience_."

Agile scheduling can mean a lot of things. *Employee Self-Service*
_"Optimize labor and employee engagement by reducing manager workloads and giving employees the tools to easily manage availability, time off, schedule changes, swaps, filling open shifts and more."_

No middle managers, no time sheets, digitally enabled employees can bid for shifts in multiple locations; when Balmain Woolies recently had all 50 staff put into 14 day self-isolation, replacement staff was found quickly.


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## Dona Ferentes (28 October 2020)

Coles and Woolies are having a good pandemic



> Coles' same-store supermarket sales rose 9.7 per cent in the September quarter, boosted by a popular Little House collectibles promotion and strong demand for food and groceries both online and in-store by locked-down Victorian shoppers. This compared with 7.1 per cent growth in the June quarter and beat most analysts' forecasts. However, sales growth slowed slightly in October, with same-store food sales up 6.4 per cent. ( highest was 13.1 per cent in the March quarter 2020, during the first wave of panic buying. )
> 
> The September quarter sales were buoyed by stronger than expected e-commerce growth and heightened demand in Melbourne, where cafes, restaurants and food courts were closed and supermarket shopping was one of only a handful of permitted activities. Excluding Victoria, same-store food sales rose 7.7 per cent.




Weekly, since COL listed (Light blue; WOW dark blue)


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## Dona Ferentes (25 January 2021)

and still neck and neck, heading into reporting season

Since COL (dark blue) refloat,  ....a bit of settling in, then off to races:


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## Trav. (17 February 2021)

Can anyone explain to me why COL is down ~5% after releasing their HY results.

I am not up to speed on the FA but the below extract looks good to me, what am I missing ?


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## MovingAverage (17 February 2021)

Trav. said:


> Can anyone explain to me why COL is down ~5% after releasing their HY results.
> 
> I am not up to speed on the FA but the below extract looks good to me, what am I missing ?
> 
> View attachment 120203




Most things down today...only things that seem up are banks


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## MovingAverage (17 February 2021)

Consumer staples looks to be getting sold off today, which I think COL is a constituent.


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## Trav. (17 February 2021)

Maybe you are right and COL is getting caught up in the overall market sentiment. I thought that I had missed something in the numbers.


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## Dona Ferentes (17 February 2021)

the institutional element always thinks it is forward looking, and various fund managers are probably selling as projections entered into their spread sheets are less rosy than before.

_Coles has become the first retailer to explicitly warn that sales could decline over the remainder of the year as the COVID-19 sugar hit to the sector in the June half of 2020 wears off thanks to the vaccine rollout and a reduction in stimulus payments.

The retailer warned investors on Wednesday its sales surge, brought on by pandemic panic buying through the last 9 months of 2020, could be coming to an end, with sales for the first six weeks of the new year growing just 3.3%, well below the 20%-30% monthly growth rates Coles was reporting at times in the June quarter of 2020.

And there looks like being an impact on earnings in the current half and the first half of 2021-22 as well, as Coles explained. It said growth in its online sales “has moderated to 37%. As the business begins to cycle the COVID-19 impacts in the second half of FY21, Supermarkets sales and EBIT growth are expected to face challenges relative to the prior corresponding period.”_


> _“Depending on COVID-19, vaccine roll out and efficacy, and other factors, sales in the supermarket sector may moderate significantly or even decline in the second half of FY21 and into FY22,” Coles warned on Wednesday in its interim results commentary._




_While the outlook remains uncertain, Coles said the following trends are likely:_

_Some reversal of the local shopping trend as customers become more confident in shopping in larger centres resulting in stronger performance of shopping centre stores; _
_Increased movement as COVID-19 restrictions ease which will assist in the restoration of fuel volumes relative to pre-COVID-19 levels and _
_reduced immigration which has underpinned population growth, an important sales growth driver, in prior years._
_Coles also pointed out that “the benefits of recent improvements in both employment numbers and consumer confidence may be partly offset by a reduction in fiscal stimulus measures introduced during the height of the pandemic.”_


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## barney (17 February 2021)

Trav. said:


> Maybe you are right and COL is getting caught up in the overall market sentiment. I thought that I had missed something in the numbers.



Out of my league Trav, but I always look for subterfuge in any price action?  (Specs make you be like that, lol

Coles upcoming Dividend record date is 1st March i believe?

Large funds (insert big players)  are the only ones who can orchestrate large price moves in these big Stocks (my assumption)

Pushing it down will release the fringe holders, meanwhile they mop up the slack?

Maybe they are holding Put Options and can clean up with the price dropping?

They collect on the Puts, the loose shares and the upcoming divvies??

I'm just babbling on/guessing of course.  Hopefully the Support level just above $17 holds firm for you guys holding.

ps DF (@Dona Ferentes ) above suggestion looks a bit more regular than mine, lol.  Divvy time does seem to bring on some odd price action at times though


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## Trav. (17 February 2021)

Thanks guys, forward looking or manipulation is always hard to pick understand

I have bought in today on the dip just for a quick trade so we will see if I can make enough for beer or two.


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## PZ99 (17 February 2021)

Like for like selling growth is down from the previous year... but that's the deal with retail.

EPS above DPS + franking credits were enough for me to load the truck to the lid on this one


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## Dona Ferentes (23 February 2021)

slowing sales a reality post Covid ... consumption brought forward?? Changing consumer habits?



> Coles continued to experience elevated sales as a result of COVID-19 which saw the prior trends of basket consolidation and fewer shopping trips persist during the half, however, transactions were supported in December by international border restrictions which saw more Australians stay at home over the Christmas holiday period.


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## Dona Ferentes (28 April 2021)

clawed its way up on today's numbers (not as bad as anticipated); still under $16

April sales at Coles rose a _higher than expected_ 4 per cent and CEO Steve Cain  said trading was trending to more normal patterns, with customers  returning to CBD stores and shopping centres, rather than favouring neighbourhood stores, as they did in 2020, as pre COVID19 shopping habits returned.

But food retailers continue to battle for market share; Coles dropped prices (excluding tobacco and fresh foods) on average falling 0.8 per cent ... the  first quarterly deflation since 2018 ... compared with price inflation of 1.8  per cent a year ago. Deflation in the quarter was largely a result of the cycling of pantry stocking which led to uncertainty of supply and lower promotional mix, and fresh produce deflation particularly in vegetables, as a result of droughts and bushfires in the prior corresponding period. 

Coles'  total March quarter sales fell 5.4 per cent to $8.7 billion, with  weaker supermarket sales offsetting 2.6 per cent growth in liquor and 7.4 per cent growth in convenience stores.  Online food sales jumped 49 per cent, with sales penetration  increasing to 5.5 per cent in the third quarter, up from 5.3 per cent in  the December quarter. Online liquor sales soared 72 per cent.


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## sptrawler (28 April 2021)

Dona Ferentes said:


> clawed its way up on today's numbers (not as bad as anticipated); still under $16



It does ask the question, whether the Australian market place is big enough for two major food chains?
Aldi, Metcash and small deli's, 7/11 etc mop up the fringe.
I have divested WOW and COL, put the proceeds into AFI.
Reason being they pay a better dividend and have more resources to dedicate on who has the best business model.
Just my opinion.


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## Dona Ferentes (30 April 2021)

sptrawler said:


> It does ask the question, whether the Australian market place is big enough for two major food chains?



Yes. (ACCC will ensure at least that)
_But three, of equivalent size? _
Probably not. Franklins tried. Metcash/ IGA is not 'major' but intermediate. Aldi is down market, own brand. And suffered through not doing deliveries during the pandemic. Kaufland tried. Costco is fringe. 7-11 is impulse


sptrawler said:


> I have divested WOW and COL, put the proceeds into AFI. Reason being they pay a better dividend and have more resources to dedicate on who has the best business model.



Diversification for me. Tick. More resources by AFI or similar. Tick.

Interesting that you did this, SP. I was thinking the same; why is it in the portfolio? I'll keep Wesfarmers but the small holding of Coles is pointless. I even looked up the Cost Base from when it was hived off from WES ($12.73?) and then decided next FY.

With a market cap of $21B and in the ASX Top20, the shareholder base is driven by fund managers, institutions and index funds. Retail is just around the edges; when news moves the analysts to either buy or sell, then the change can be dramatic. This has been shown twice recently; The Feb half year results saw  news of slowing sales  *post Covid*, with the acknowledgement of consumption brought forward and changing consumer habits. There was a drop from $18 to under $16, almost overnight Woolies had a drop but not as dramatic, and MTS hardly moved at all.

Then, just recently, the 3Q numbers showed COL having lower Q sales, and then WOW came out with less of a sales drop but its shareprice fell more than Coles, which has actually risen .. all got to do with expectation and whether the analysts got it right or need to do sudden revisions on their spreadsheets.

So, yes, leave these sorts of shares to those that pay greater attention is a good idea. Not only the binary choice of one versus the other, but also sectoral weight and value versus growth dynamics.

Think I'm talking myself into selling, sooner rather than later


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## sptrawler (12 July 2021)

Coles looking to take on board the Aldi model.








						In-store butchers face the chopping block in Coles proposal
					

Hundreds of trade-qualified butchers may be "redeployed" and meat only provided pre-packaged under a proposal being considered by the supermarket giant.




					www.abc.net.au


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## Miner (4 December 2021)

11 July to 4 Dec. Long gap so my two cents after visiting Bunnings today .
Fly buys started in Bunnings.
Wesfarmers are shown hectic interest with woolworth on pharma.
Could WES look back to take back Col under its wings while courting with WOW?
Vanguard does not think so however. So they are unloading.
Morningstar said sell. 
Do not hold.


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## Dona Ferentes (4 December 2021)

Miner said:


> 11 July to 4 Dec. Long gap so my two cents ....
> Could WES look back to take back Col under its wings while courting with WOW?



Held onto my COL since the spin out, but let them go recently. Got $18.02, then they fell last week.

Some say the stock is an inflation play, because they keep margins as prices lift; am not so sure. 

I'd been thinking about selling and @sptrawler was helpful in refocusing on them. 👍

WES would never revisit, I don't think. The flybuys data is useful for "insights" but they're into jazzier stuff.


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## Ann (4 December 2021)

Miner said:


> Vanguard does not think so however. So they are unloading.



I think a major investor has dumped Vanguard, (bloody day trader!) I am seeing these notices all over the place at the moment. 

Coles chart is a tough one. The daily looks like it should be dumped but looking at it on the monthly chart, it gives some degree of confidence.



Miner said:


> Could WES look back to take back Col under its wings while courting with WOW?



I think not. I am guessing they can see a way to improve Priceline et al. COL they may have fixed...dunno just a thought. Their meat is still yucko, but so is Woolies now as well. Coles have a darn nice $5 dark fruit cake but!


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## divs4ever (4 December 2021)

the only reason i can think of  for Vanguard  to reduce COL  , is because of the alcohol arm ( and ESG mandates )

 if Vanguard wants to bulk up on WOW well good for them 

  i hold both COL ( courtesy of the WES demerger ) and WOW  ( inherited  but reduced  by 90% since )

 maybe COL will drop below $10 and actually tempt me to BUY some


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## Ann (4 December 2021)

divs4ever said:


> if Vanguard wants to bulk up on WOW well good for them



Nope, dumped WOW on the 17the Nov. I am sure they have been told to F off by a substantial investor.


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## divs4ever (4 December 2021)

an interesting strategy to lighten the load on WOW and COL , did anyone bulk up on MTS , or is that sector being deserted , surely WOW and COL are considered safe havens in the Oz economy


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## Ann (4 December 2021)

divs4ever said:


> did anyone bulk up on MTS



State Street Corporation 21st September acquired 48,788,952 - 5.05% voting power for MTS. I have noticed a number of State Street purchases. I am thinking someone has dumped Vanguard and moved to State Street. Just a thought!


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## divs4ever (4 December 2021)

well that wasn't me back then  , but my Vanguard holdings are up for sale  .. at a price 

 although i have have a  good run with SYI , i can't guarantee  State Street   will get extra cash in the future  .. MVW is the only ETF on my shopping list currently  ( but a melt-down could change that )


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## Dona Ferentes (14 December 2021)

and COL down a few percent on the WOW update

_Woolworths’ first half Australian Foods earnings are expected to be weaker than a year ago with COVID-19 costs still biting the supermarket giant. The company said while its sales and customers remained strong relative to the overall market, both indirect and direct costs associated with COVID-19 had weighed._


> “_The first half of FY22 has been one of the _*most challenging halves we have experienced in recent memory *_due to the far-reaching impacts of the COVID Delta strain and its impact on our end-to-end stock flow and operating rhythm,”_ said Woolworths chief executive Brad Banducci.
> 
> “_Sales growth in Australian Food is positive on a one-year basis and strong on a two-year basis but moderated in Q2 following the easing of restrictions in NSW and Victoria._





> _“However, the ongoing material costs of operating in a COVID environment has impacted our expected earnings in the first half. COVID has had a significant impact on costs, even more so than last year due to the combination of both direct COVID-related costs, together with the indirect impacts from disruption caused by COVID.
> 
> “This includes the significant disruptions we have seen across the end-to-end supply chain, and the *material inefficiency *this causes in our stores, distribution centres and transportation.“_


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## divs4ever (14 December 2021)

i was going to wait for a couple of annual reports  to be tabled  before i consider putting actual cash into COL shares ( the holding i have  was courtesy of the WES spin-off )

as far as i am concerned these are truly unusual times  , and am not sure how things will pan out if major shopping malls start to die  ( in theory COL should do slightly better if that happens  , but i think MTS might be a winner if that trend happened )

 i also note WOW-supplier alliances  tend to be the  'kiss of the vampire ' for the small guy , which i why i gambled  on FIJ recently and their COL placement agreement ( which i hope will be mutually beneficial )


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## Miner (14 January 2022)

divs4ever said:


> i was going to wait for a couple of annual reports  to be tabled  before i consider putting actual cash into COL shares ( the holding i have  was courtesy of the WES spin-off )
> 
> as far as i am concerned these are truly unusual times  , and am not sure how things will pan out if major shopping malls start to die  ( in theory COL should do slightly better if that happens  , but i think MTS might be a winner if that trend happened )
> 
> i also note WOW-supplier alliances  tend to be the  'kiss of the vampire ' for the small guy , which i why i gambled  on FIJ recently and their COL placement agreement ( which i hope will be mutually beneficial )



Couple of annual reports meaning at least two years . That is a real good long term strategy.
Looking into one year travel of the stock price, it looks like after December sales, there is a trend to go down.
Is that happening today and over last week ?
Would the outcome of Ombudsman's finding in due course of time, would make any dent or polish of dent ?


			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02461549-553IME09NEOE236KV2DFE5O706/pdf?access_token=0007LkvDpP52jwsPLembRgq1jtot
		

DNH


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## Dona Ferentes (14 January 2022)

Miner said:


> Looking into one year travel of the stock price, it looks like after December sales, there is a trend to go down.
> Is that happening today and over last week ?




I've been watching COL and WOW go down, pretty much in sync (though MTS hasn't) and have attributed it to the costs associated with Covid. And specifically Omicron.









						How Omicron is shutting down huge swathes of Australia's economy
					

The rapid spread of the Omicron variant is hitting the heart of the economy as an unprecedented shortage of workers throws the supply of goods and services into chaos.




					www.abc.net.au
				




The HR juggle with staff shortages, of absent staff, losing significant percentage of workers either isolating from the virus or in isolation due to close contact, is eating in to operations.
And the supply line issues; of producing then processing then getting it to customer. Trucking is badly hit. Processing lines are hit.


> Supermarkets are seeing shortages of food, particularly fresh fruit and vegetables and meat products, as staff come down with COVID-19 at their warehouses and in stores.




Interestingly, the smaller distribution networks aren't as impacted. Less complex logistics. Our local butcher is doing well, as is the corner store (yup, we still have one)


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## Miner (14 January 2022)

Dona Ferentes said:


> I've been watching COL and WOW go down, pretty much in sync (though MTS hasn't) and have attributed it to the costs associated with Covid. And specifically Omicron.
> 
> 
> 
> ...



@Dona Ferentes  - may be it is time for the local butcher to float an IPO


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## divs4ever (14 January 2022)

Dona Ferentes said:


> I've been watching COL and WOW go down, pretty much in sync (though MTS hasn't) and have attributed it to the costs associated with Covid. And specifically Omicron.
> 
> 
> 
> ...



 i dumped MTS a fair while back  (  mid 2015  and below $1.20 )  before the bought the hardware wreckage  from WOW , in hindsight that was obviously a mistake  ( but i still make some )

 i currently hold more COL ( courtesy of the WES spin-off ) than WOW  but i fully participate in the WOW  , but not in the COL one , so in a few years WOW might catch up  , WOW would probably have to reinvent itself ( not rebrand ) before i would actually BUY more  , and am more likely to buy extra EDV  ( the current holding is courtesy of the WOW spin-off ) than WOW

 am not rushing to buy extra COL or EDV  , currently  , but that could change  if the results look good ( in the next two years )

 now i doubt it will happen  but since MTS  services a wide range of franchisees  , what chance of mini-malls  mostly tenanted by MTS franchisees  , say a hardware , liquor outlet and IGA  , they are some small strip malls on their knees  ,  MTS  could bundle the malls into a REIT  , 

 WOW is trying to do similar   with SCP as the landlord ( in some cases )


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## frugal.rock (25 February 2022)

I went to a Coles last night with a craving for liverwurst.
None.
The deli area has been replaced with pre sliced salami etc in fridges.
Over the other side of the shop near yoghurt and fresh juices are the brand names salamis, Don, Hans etc
No liverwurst anywhere but a million different other processed crap stuffs, hot dog franks, salamis, hams etc etc mind boggling the array of stuff between both sections.

So  I tried a different Coles today... same deal. No liverwurst.
I asked a staff member who said they don't sell it anymore and pointed to the area on the shelf where she used to place them.... no price tag anymore.

My craving for liverwurst drove me to a Woolworths....
They had some Don brand. They were out of another brand, but the price label was right there next to the other one.

Mmmmmm, Latvian liverwurst.
Yummo.
Mostly, only older people would understand this liking for such an offal product.
Craving satisfied, no thanks to Coles though.
For shame Coles...
😂


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## Miner (25 February 2022)

frugal.rock said:


> I went to a Coles last night with a craving for liverwurst.
> None.
> The deli area has been replaced with pre sliced salami etc in fridges.
> Over the other side of the shop near yoghurt and fresh juices are the brand names salamis, Don, Hans etc
> ...



Did you sell the COL and WOW shares after your visits ? : 
What about all racks are out of toilet rolls, no more discounted Digestive biscuits and the useless chocolate ones at premium price.
COVID is a big business opportunity for these super markets under disguise.
IGA has every thing on the stock but they also charging higher price.
So the question is MTS, COL or WOW ?


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## sptrawler (25 February 2022)

Miner said:


> Did you sell the COL and WOW shares after your visits ? :
> What about all racks are out of toilet rolls, no more discounted Digestive biscuits and the useless chocolate ones at premium price.
> COVID is a big business opportunity for these super markets under disguise.
> IGA has every thing on the stock but they also charging higher price.
> So the question is MTS, COL or WOW ?



I sold WOW and went AFI.  🤣 
Still have some COL, outside the SMSF, but looking to do an OMT into the SMSF as I have plenty of capital losses to offset it.


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## Dona Ferentes (16 May 2022)

I wonder what the cost is? 


> On Friday, Flybuys emailed a number of members to let them know they had been incorrectly awarded bonus Flybuys points on some of their purchases at Coles due to an administrative error.



_Now, I haven't dug too deep but I'd say my flybuys points went up by 2000 = $10 . Multiply by a few million cardholders and it could get expensive._



> As a gesture of goodwill, Coles and Flybuys have decided to honour the points for customers who received them in error, and we are working to restore them to member balances as soon as possible.



_Always messy when the coding doesn't drop properly._


> We apologise to members for the inconvenience and have reviewed our procedures to prevent similar occurrences in future.



...._ Of course you do, the alternative would be a bunfight, with ambo chasers shouting from the rooftops._


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## Dona Ferentes (3 June 2022)

*nflation*

“But as I sit here today, we have got five times as many requests for price increases as we had last year. Five times… And they’re not small amounts. It’s not 2 per cent or 3 per cent being asked for either”
_- Stephen Cain, CEO, Coles Group Ltd_


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## Dona Ferentes (24 August 2022)

Coles declared an improved final dividend of *30¢* up from 28¢ after growing its 2022 profit 4.3 per cent to $1.05 billion.

Revenue increased two per cent to $39.75 billion;
*supermarkets *were up 2.2 per cent to $34.62 billion and 
*liquor *lifted 2.5 per cent to $3.6 billion
 with gross margin expansion achieved in both categories, but cost of doing business pressures eroded EBIT margins.
*Express *fell 5 per cent to $1.13 billion.
Supermarket earnings before interest and tax was up 0.8 per cent to $1.72 billion, liquor EBIT fell 1.2 per cent to $163 million, and express EBIT sunk 37.3 per cent to $42 million reflecting travel restrictions throughout the economy.

Costs attributed to COVID-19 were $240 million up from $130 million
Capex planned for financial 2023 will be $1.2 billion to $1.4 billion.


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