WES - Wesfarmers Limited

[Garpal Gumnut]

I am not a funnymentalist and can only go on my own observations of some of WES Retail outlets.

Coles : Could do better
Officeworks : Going gangbusters
Liquorland : Could do better
KMart : absolute crap, cheaper to close it down
KMart Tyre and Auto : going gangbusters
Bunnings : Absolutely gangbusters, flogs the opposition, what opposition ?

gg

 

[tigerboi]

Prawn.. agree with you. I am talking about your basic grocery lines. I go to specialty butcher , growers market for fruit and veg etc. it's all the stuff you sadly can't eat, but still seem to have stuff your cart with that I'm less fastidious about.

For example I live in Leichhardt, go to local shopping centre where said butcher and fruit and veg resides, not to mention excellent fish shop, grog and so it goes. There is a Coles there so I am not going to make a separate trip to another shopping centre just for the pleasure of shopping at Woolworths.

Not a chance

So I think,with absolutely nothing to back it up, it is about the location and what other shops that surround said store offer that makes the difference( to me)
Klink

just wondering if you grew up in leichhardt ck?i grew up there & went to leichhardt primary & high...the good old days of amco cups & the swimming pool...great memories

oh by the way reckon WES with its debt & coles is the short of 2009...tb

 

[michael_selway]

I am not a funnymentalist and can only go on my own observations of some of WES Retail outlets.

Coles : Could do better
Officeworks : Going gangbusters
Liquorland : Could do better
KMart : absolute crap, cheaper to close it down
KMart Tyre and Auto : going gangbusters
Bunnings : Absolutely gangbusters, flogs the opposition, what opposition ?

gg

Hi Not bad

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 179.5 231.2 160.0 189.6
DPS 200.0 200.0 140.0 170.0

Date: 17/12/2008
Author: Hannah Tattersall
Source: The Australian Financial Review --- Page: 7
Australian retailers are promoting pre-Christmas specials to offset a a bleakDecember 2008 trade. Myer is offering one-day specials. Kmart is giving 50% offChristmas trees and video games. Sales growth in 2008 is at 0.2%, whereas in2007 it was 7.4%. Analysts see the discounting as a panic reaction. Some smallerretailers are not so concerned

thx

MS

 

[Colonel Klink]

just wondering if you grew up in leichhardt ck?i grew up there & went to leichhardt primary & high...the good old days of amco cups & the swimming pool...great memories

oh by the way reckon WES with its debt & coles is the short of 2009...tb

Yep ..still a good spot but I am a comparative blow in (1990). Helps if you don't mind the odd jet(or 20) over your roof.

As for WES ...well, looking to the future there, you might say, because it's no fun at present! ..klink

 

[gerg]

Michael

Where do you get those nice graphs you always seem to include in posts?

Why do you always have then tagged as Director Activity Report, and whose predictions are they for WES earnings in 2009/10/11. They show a marked dip in 2010.

Gerg

 

[gfresh]

Update out today, puts into question the ability to pay out the their nominal 11% yield..

How are they going to fund that $1bn due in October? and then the $5bn due next year? Some large dilution coming up ..

The FY2009 interim and final dividend will depend on a number of factors. The company’s ability to pay dividends for FY2009 at the previous guidance level of $2 a share will be impacted by, particularly, the finalisation of the half year accounts, full year results (which will be impacted by the factors noted above) , the outcomes of the impairment testing process, and the structure, conditions and timing of the company's refinancing programme, all of which will potentially impact on the companies retained earnings, franking credit position and dividend capacity.

In the event of a negative impact from these factors, the company may not be in a position to pay dividends for FY2009 at the previous guidance level.

Wesfarmers expects to announce its interim dividend and results for the half year, following eview by the company’s external auditors, on 19 February 2009.

 

[tigerboi]

Michael

Where do you get those nice graphs you always seem to include in posts?

Gerg

the directors charts come from top stocks but i think you got to pay up to get...

down about 10% since i caned it as the short of 2009...tb

 

[ROE]

http://business.theage.com.au/business/wesfarmers-in-halt-pending-capital-raising-20090122-7mz4.html

first $29, now could be $12 value destroying stock.
Like I say Goyder is a bit of a gamble.

 

[noirua]

An ASX announcement says Wesfarmers are in trading halt pending an announcement by the company on capital raising.

 

[investorpaul]

I am not a funnymentalist and can only go on my own observations of some of WES Retail outlets.

Coles : Could do better
Officeworks : Going gangbusters
Liquorland : Could do better
KMart : absolute crap, cheaper to close it down
KMart Tyre and Auto : going gangbusters
Bunnings : Absolutely gangbusters, flogs the opposition, what opposition ?

gg

I work for a property development/investment firm that owns a number of shopping centres with Coles as the anchor tenant. Compared to Woolworths they just cant get anything right. Their stores look old and tired (even though one has been recently refurbished). They fresh produce is below standard and I cant see it lifting in the short term.

Woolworths have maintained their fresh and "exciting" image, they consistently achieve better sales out of their stores and as a result any developer wants them as a major tenant, thus allowing them first pick for new stores. Their liquor division is obviously closely tired to supermarket performance and hence liquorland could also do better.

We dont have any other the other retailers as tenants but I would say your summary is pretty spot on.

 

[deadset]

another one doing a capital raising.... once one does it, they all want to do it, be careful.

No wonder they do a trading halt when they announce it, as if you wouldn't dump any company about to capital raise. From what I can tell, capital raising guarantees that the stock price will stay below a limit until its all over and it hurts current shareholders no matter what.

Capital raising = dirty dogs IMO

 

[nomore4s]

another one doing a capital raising.... once one does it, they all want to do it, be careful.

No wonder they do a trading halt when they announce it, as if you wouldn't dump any company about to capital raise. From what I can tell, capital raising guarantees that the stock price will stay below a limit until its all over and it hurts current shareholders no matter what.

Capital raising = dirty dogs IMO

Problem is they don't really have a choice due to the huge debt levels they have. It's either raise capital or get into more trouble which would then hurt shareholders even more.

It looks like the capital raising will be at a fair discount too. The share price could get smashed when it starts trading again.
I have trying to get a short entry on WES but couldn't find a set up I liked to justify it - oh well you win some and you lose some.

 

[drsmith]

$13.50 per share although a 3 for 7 entitlement offer. Institutional component of $1.9 billion fully underwritten.

$An additional $900 million placement at $14.25 per share so a total of $2.8 billion garanteed.

Interim dividend expected to be $0.50 fully franked. Full year dividends not expected to be greater than $1.00 (fully franked). None of the new shares noted above will be entitled to the interim dividend.

http://www.asx.com.au/asxpdf/20090122/pdf/31fnrhq0jqkhz0.pdf

I suspect it will initially trade above entitlement offer of $13.50 (those taking shares at $14.25 obviously think so) but where it goes from there in the short terms will obviously depend on overal market performance.

$13.50 ($14.25) ex div implies $14.00 ($14.75) cum div. I'll guess $15.00 when trading resumes.

 

[ROE]

They need to get rid of the gambler and bring back Michael Cheney.. He make careful takeover and make sure share holder interest was always at heart and it pay off for WES big time over the year..

it doesn't take long for an idiot to un-do all the hard work.

 

[tigerboi]

the directors charts come from top stocks but i think you got to pay up to get...

down about 10% since i caned it as the short of 2009...tb

you can also get them from hc looks like wes are headed much lower as i thought they would this year,reckon the coles gamble was a no brainer up against such a well run competitor as woolies,more pain & lower prices coming shareholders way...tb

 

[ROE]

More nightmare could be heading WES way
http://www.theaustralian.news.com.au/business/story/0,,25009354-643,00.html?from=marketwatch_rss

 

[UMike]

This is an already over saturated market with so many players involved that it'd be very difficult to start up from scratch and be profitable straight away.

WES need only to improve their existing businesses and reduce debt to become a better performer.

 

[oldblue]

Yes, I'd be surprised to see WOW try and start anything from scratch. If they can't takeover some reasonably sized current player I'd expect them to scrap the idea.

 

[rodmel]

Wesfarmers WES (Renounceable)

I would apreciate members opinions regarding this issue,
as to whether to attempt to obtain more than my allotment
at $13.50 as against Fridays close of well above $15.00

 

[skc]

Re: Wesfarmers WES (Renounceable)

I would apreciate members opinions regarding this issue,
as to whether to attempt to obtain more than my allotment
at $13.50 as against Fridays close of well above $15.00

I think you will quickly get a message from the Mods saying you can't ask for, and no one can give you, specific recommendation or advice. Unless they are licensed etc etc.

But let's just say if you buy at $13.5 and sell at $15, you make a $1.50 profit.