WES - Wesfarmers Limited

Ferret · 21 August 2009

Look what they built out of nothing with Bunnings. These guys know retailing. Give them some time and they'll pull it together for coles etc too.

lianeisme · 21 August 2009

Because they payed too much for the Coles asset in the first place, the income from that asset is very low, compared to the purchase price. It will take years for the value of the asset to meet the price originally paid. To put further pressure on WES. COSCOS is coming to town, WOW has been very aggressive and ALDDI is becoming more robust in the market place. Their Bunning’s chain really has no competitors at present.

Gekko · 28 August 2009

I have today entered a short position on Westfarmers. Stop-loss set at $26.80. PE around 24. Target ~$20.

MACCA350 · 28 August 2009

Gekko said:
I have today entered a short position on Westfarmers. Stop-loss set at $26.80. PE around 24. Target ~$20.

Meanwhile WES closed up 2.33% to $25.50

There may be some pull back, but I don't see it dropping to $20, though I guess it is possible. Personally(I picked up a bunch of WES at $18 with a long term hold position) I'm not concerned.

cheers

airpoe · 28 August 2009

MACCA350 said:
Meanwhile WES closed up 2.33% to $25.50

There may be some pull back, but I don't see it dropping to $20, though I guess it is possible. Personally(I picked up a bunch of WES at $18 with a long term hold position) I'm not concerned.

cheers

same here picked up 10k @ 18.80, looking long term & won't lose sleep over this purchase

I don't see why it would not go back to 40+ in the next few years

UMike · 29 August 2009

I only got my SPP shares left. @27.9 It'll be worth over 10 grand more than I paid for it.

I reckon It has more of a chance to hit at least that before $20.

Good luck to all holders.

Gekko · 29 August 2009

MACCA350 said:
Meanwhile WES closed up 2.33% to $25.50

There may be some pull back, but I don't see it dropping to $20, though I guess it is possible. Personally(I picked up a bunch of WES at $18 with a long term hold position) I'm not concerned.

cheers

Macca, i buy what i like most, and short what i dislike or like least. Westfarmers comes into the later two categories. Apart from thinking its trading on too excessive a PE, its also risk management and hedging.

Gekko · 30 August 2009

Gekko said:
Macca, i buy what i like most, and short what i dislike or like least. Westfarmers comes into the later two categories. Apart from thinking its trading on too excessive a PE, its also risk management and hedging.

Bunnings has for years been a money tree to Westfarmers. Michael Luscombe is going to give it his darnedest to erode the Westfarmers/Bunnings hardware monopoly.

http://www.abc.net.au/news/stories/2009/08/30/2670948.htm

Michael Luscombe has told ABC1's Inside Business there is one large-format hardware store for every 90,000 people in the United States.

He says there is one for every 120,000 in Auckland, but in Australia there is only one for every 230,000.

"There's a big gap there, there's a big opportunity for an alternative offer that just gives consumers a choice that they don't presently have," he said.

"Choice and competition is great."

Muschu · 5 September 2009

May I ask a basic question please?
I've had WES since March. What is the "recording date" for dividends? If I sell them now do I still get the dividend due in some weeks time?
With thanks
Rick

noirua · 5 September 2009

Now thoroughly upset with Wesfarmers and completely lost confidence. Sold out at a 36% loss to buy a gold stock instead. Hope I'm wrong and they get Coles and their coal interests etc., etc., under control - good luck.

Record date for dividend is 31st August for payment of 60c a share on 1st October. Wend xd on 25th August.

Muschu · 5 September 2009

noirua said:
Now thoroughly upset with Wesfarmers and completely lost confidence. Sold out at a 36% loss to buy a gold stock instead. Hope I'm wrong and they get Coles and their coal interests etc., etc., under control - good luck.

Record date for dividend is 31st August for payment of 60c a share on 1st October. Wend xd on 25th August.

Thanks Noirua. Seems I will get the dividend. Thinking of selling out and re-investing elsewhere. Haven't felt really comfortable with WES for some time. Maybe I am not patient enough...

The outlook on gold currently seems good. I bought GOLD some time back- still at a loss - but see no point in selling. Using it as a defense. If I live long enough maybe I'll make a reasonable profit............

Regards

Rick

Muschu · 5 September 2009

noirua said:
Now thoroughly upset with Wesfarmers and completely lost confidence. Sold out at a 36% loss to buy a gold stock instead. Hope I'm wrong and they get Coles and their coal interests etc., etc., under control - good luck.

Record date for dividend is 31st August for payment of 60c a share on 1st October. Wend xd on 25th August.

PS _ If I may ask, how long did you hold them for? [An now I need to build up to a 100 characters or I can't ask you.....]

noirua · 6 September 2009

Muschu said:
PS _ If I may ask, how long did you hold them for? [An now I need to build up to a 100 characters or I can't ask you.....]

Early December 2006 was the date of my original purchase of Wesfarmers on hopes they would get the coal side of the business going well, however, they bought the wrong Coles.

Gekko · 6 September 2009

Muschu said:
May I ask a basic question please?
I've had WES since March. What is the "recording date" for dividends? If I sell them now do I still get the dividend due in some weeks time?
With thanks
Rick

Yes Rick62. WES is trading on an ex-dividend basis. You can sell now and get the dividend presuming you held up until now or until the ex-dividend date.

UMike · 6 September 2009

Don't you have to hold them for 45days after the dividend date to claim the franking credits though?

enigmatic · 6 September 2009

I could be misstaken but i believe the 45 days only applies if you make over 5,000 a year on dividends. Someone correct me if I'm wrong

Muschu · 6 September 2009

Gekko said:
Yes Rick62. WES is trading on an ex-dividend basis. You can sell now and get the dividend presuming you held up until now or until the ex-dividend date.

Thanks Gekko. Yes, I still have them - and have had since about March. Just not feeling comfortable with them and considering "moving on". Not sure yet.

Rick

kermit345 · 18 February 2010

Have had a significat jump today given the release of their report (which I haven't had a chance to read).

Has anyone else had a chance to have a look and pinpoint what was the catalyst for the increase today on the back of the report?

McCoy Pauley · 18 February 2010

NPAT rose 1% despite foreshadowed significant fall in resources' earnings.

Group EBIT down 11% but when WES takes out resources, EBIT rose 44% and EBIT from retail businesses up 23%.

18% increase in operating cash flows.

Capital raising diluted EPS, down 26%. Dividends increased 10% from $0.50/share to $0.55/share.

Looks like WES is finally getting on top of Coles/Kmart and getting those groups to turn around.

kermit345 · 18 February 2010

Thanks for posting those highlights McCoy.

If this trend continues of Coles/Kmart improving and WOW having a tough time, could see WES do quite well in the coming years. I also think WOW's move to the hardware sector will have little effect on bunnings and hence WES will continue to have a large market share for that industry.

While WES isn't out of the woods yet in regards to coles, it definately shows signs of vast improvement.

WES - Wesfarmers Limited

Ferret

lianeisme

Gekko

MACCA350

airpoe

UMike

Klutzing in Thai

Gekko

Gekko

Muschu

noirua

Muschu

Muschu

noirua

Gekko

UMike

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enigmatic

Muschu

kermit345

McCoy Pauley

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