Hi folks,
GFF ... according to our astroanalysis, this one should have a big
week, next week ..... may start the week, on the downside as a
difficult time cycle passes through, but we should see a strong
rally from Tuesday, onwards .....
Updated GFF chart, below.
have a great weekend
paul
=====
Any thoughts on this stock?
I know they supply Woodside with a lot of the accomodation buildings, surely as woodside continues to grow so would Goodman?
There's several good reasons for GFF trading at these low levels:
- Poor profitability and cost squeezes from higher input prices - raw materials, fuel etc.
- Continuing pressure from the big retailers to lower prices.
- Growing market share of in-house grocery brands at lower margins to manufacturers such as GFF.
- Difficulties in executive succession - recruitment of CEO etc.
It's not clear to me that things, including the SP, won't get worse before they get better.
There's several good reasons for GFF trading at these low levels:
- Poor profitability and cost squeezes from higher input prices - raw materials, fuel etc.
- Continuing pressure from the big retailers to lower prices.
- Growing market share of in-house grocery brands at lower margins to manufacturers such as GFF.
- Difficulties in executive succession - recruitment of CEO etc.
It's not clear to me that things, including the SP, won't get worse before they get better.
Also Agree....however see things a little more glass half full, the cost squeezes from higher input prices etc are the same for all manufacturers including the generics, price pressure has always been there as has the growth of generic/in-house brands, this is the business environment that GFF has competed in for the last 5 or 6 years and yet profit growth continues.
Sure the market place is crowded and all grocery brands are under the pump, but take away the brands and Woolies and Coles would simply be big Aldi's and that's a business model that Aldi has all wrapped up...Brands are a big part of the Woolie's and Cole's business model, generics don't pay for shelf positions and space.
GFF is a big dynamic business that isn't going to go away any time soon and at the current SP its hard to see them with a gross dividend yield of less than 8.5 or 9% going forward.
Private label goods are one of the fastest growing segments YoY...something like 10%. People are turning to generic because quality is improving/rebranding/cost of living increases - they are a very viable option and in basic foods like bread - can easily eat away at market share.
GFF's specialist bread should be fine - but standard white and wholemeal will feel the pinch.
In fact you will not see a single generic item on display at any of the aisle ends...and that's because the brands pay big money for that high profile space (up to 5K per week per aisle) and they pay the big money because there is a direct impact on sales because advertising, product placement and brand recognition works.
You will notice however that nearly all the end displays are specials for the week, generics are not usually on special but just have a regular cheap price. Most of the ends aren't paid for, they're to protect that product's regular shelf space. You want the customers getting the product off the end, not cleaning out the reg shelf space and making it empty. I really doubt that Coke or Pepsi or Sorbent would pay for an end for example. Coke is on the end because everyone loves coke and are going to buy a shytload of it imo.
Every inch of shelf space in a supermarket is paid for, Pepsi and Sorbent and every other brand absolutely pays for that space
Every inch of shelf space in a supermarket is paid for, Pepsi and Sorbent and every other brand absolutely pays for that space...those little drinks fridges right next to the checkouts...do you think they are there for your convenience? if so why are they only stocked with Coke products?and why are they mostly restocked by coke employees/contractors?
Marketing works best when people have no idea.
Out of all the 40 odd stocks ive been invested in over the last 4 years i have been saved by a takeover 3 times in stocks that have gone against me...so buying quality, averaging down at significant intervals, and having patience has served me well.
~
I just asked on your ASX 300 Super thread what you were going to do. Sorry to hear you are still behind the eight ball, thought you might have been in front. So what are you going to do right now? Sell out? Wait for a higher offer? Or what? Just curious.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?