WES - Wesfarmers Limited

[Julia]

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.

Essentially agree, but would never underestimate Woolworths.
I don't know if it might be just my local stores, but Coles' customer service seems to be considerably improved, whilst Woolworths is definitely not what it was for service. Coles have improved the layout and presentation in their store too.

 

[McCoy Pauley]

Essentially agree, but would never underestimate Woolworths.
I don't know if it might be just my local stores, but Coles' customer service seems to be considerably improved, whilst Woolworths is definitely not what it was for service. Coles have improved the layout and presentation in their store too.

It's taken WES two years to improve the Coles division but it seems to be finally paying some dividends. Having said that, I recently bought a house in the suburb I grew up in and have had occasion to visit the local Coles - it's like stepping back in time 20 years or so!

Given that there are improvements to be had in the resources and insurance sectors, and I thought that the Officeworks business performed below average on the numbers, I'm liking my (long-term) investment in WES at the moment.

It'll be interesting to see how WOW responds in the next 12 months. Integrating their new hardware chain into the group may cause some difficulties, or it may not but it's fair to say that they're challenging the dominant player in the market in Bunnings. The added competition for Safeways (Coles) and Big W (Kmart, Target) will undoubtedly spur WOW into making their own improvements to their chains. That should only be good for the consumer, in the long run.

 

[jancha]

Essentially agree, but would never underestimate Woolworths.
I don't know if it might be just my local stores, but Coles' customer service seems to be considerably improved, whilst Woolworths is definitely not what it was for service. Coles have improved the layout and presentation in their store too.

Yes i have noticed the improvement in Coles set up and faster check-out service.
I normally shop Wollies out of pure habit but am finding it frustrating at waiting in line with the check-out.
Unless you use the self serve check-out it's slower going.
They've may have reduced staff by installing them and cut cost in doing so but in the long run i think Coles will pick up more customers like me because of it.
I fully agree with what your saying here Julie & if enough people start seeing that & shopping there then Wes sp should only improve on that in the future.

 

[kermit345]

I'm not convinced WOW will be able to match it in the hardware sector with bunnings. So many people (and businesses) would have long standing accounts with bunnings and because of their warehouse type structure they have reasonable prices because of their bulk purchasing of inventories.

Plus I remember reading somewhere a while ago (possibly Eureka Report) that the supply chain for WOW's hardware business actually provides more improvements for Mitre10 then it does themselves, cant remember the exact details but if anyones interested I can try and find the article.

Clearly WOW still has the upper hand in this battle, but I feel WES are doing a great job of bridging the gap. I was lucky enough to buy in march at just under $15, and I feel WES still have some way to go. Especially with the WESN stock which is partially protected and hence SP will have to at least reach the price associated with that otherwise they have to give out free shares (upon meeting the convenants of course).

 

[JTLP]

Hi all,

I work closely with both major supermarkets in developments and Coles is definitely making the turnaround. They have introduced massive savings on items with their dollar buys and are creating new/brighter stores and refurbished older stores. Both Coles and Woolies say that Coles has been gaining ground by being more responsive.

On the other hand Woolies have better relationships with suppliers currently because they work more exclusively and longer with key partners.

 

[McCoy Pauley]

Interesting to see in today's AFR renewed speculation that Wesfarmers (via Bunnings) is sniffing around Reece again. Merging Reece into Bunnings would fill a gap in the Bunnings model as well as extend WES into the professional plumbing industry.

 

[Judd]

The pain of it all. As if. I'll take an annual $1.25 ff dividend any day. That income covers way more than my annual internet and telephone costs.

Off to something more fulfilling than watching little squiggles on a graph that supposedly indicates wealth.

 

[freebird54]

I have WESN this is from one of the newsletters I subscribe to

I am holding


What this means is simply that You May Get More WES in due course if you Buy WESN.
If you have no doubt that WES will move above $43.11 you may not bother to get this protection.
But WES’ all-time high was $42.545 only briefly in June 2007.
Since the WESN issue it has always traded below its Cap Price and since June 2008 it has been below the Floor Price.
If WESN were reclassified at today’s $31.84, a holder of one WESN would get 1.25 WES shares.
The benefits at other prices are easy to calculate by dividing the Cap by the price – eg up to $34.49 you get 1.25 WES; if WES were
$36 you get 1.1975 shares; if $38 – 1.1345; if $40 – 1.0778; if $42 – 1.0264; and if WES were $43.11 or more you just get one share.
The cost of this Protection and the Significant Additional Upside Potential is small.
Over the 62 trading days from 21 December 2009, on a daily basis the weighted average traded price of WESN has been 3.84 ¢ higher
than that of WES – adding say 1/8th of a percent to the cost. However, with careful timing this may be better. On five days WESN were
cheaper than WES (in the best case by 12.4 ¢). On the 32 days WESN cost more (on average), the difference was 14.3 ¢ on one day and
only more than 7.5 ¢ on nine days. And with well timed buying you should be able to do better than this, on a swap or a new purchase.
Note that there is plenty of trading volume for most retail clients – over the last 62 days on average $36.7m WESN were traded daily,
compared with $132m WES per day.
PS – if you already have WES and no significant capital gains tax implications, consider selling to
switch into WESN. While the stock market appears to be improving and we anticipate a bull market
period ahead, there could still be left-field events that would make safety and the extra upside a
welcome benefit.

 

[aussiebbs]

Interesting chart for Westfarmer

Today's price doesn't bounce back but stay on the 61.8% level. Need to wait to see what will happen tomorrow!

 

[Miss Hale]

I have WES and WESN as a result of originally having Coles shares. However I am confused about what is going to happen with WESN shares. I thought they were due to be converted or whatever at the end of September this year but haven't received any communications on this from Westfarmers nor can I find anything about it on their website . Can anyone shed any light on this? TYIA

 

[rolandstar]

Wesfarmers Wes

Wesfarmers own Coles & Officeworks. I plan on spending $300+ over the next
year at OW, since its walking distance.

 

[McLovin]

Re: Wesfarmers Wes

Wesfarmers own Coles & Officeworks. I plan on spending $300+ over the next
year at OW, since its walking distance.

Shouldn't this be disclosed to the ASX?

 

[skc]

Re: Wesfarmers Wes

Shouldn't this be disclosed to the ASX?

Lol. The $300 increase in revenue is certainly significant in the context of WES. I bought a truck load of WES on this information this morning.

However, the fact that roland walks to his local officeworks had me worried. Clearly, he's not driving, catching taxis or using internet and delivery services. I have placed large short bets on companies such as Carsales.com, Cabcharge, Telstra and Toll on the above.

It's amazing how much trading opportunities one can find with such valuable information.

 

[kermit345]

Should probably short some of the Oil major's as well skc, given the significant drop in fuel consumption that will be associated with rolandstar's decision to walk to OfficeWorks. Some of the major oil producers in the middle-east may have to pullback on their production so to counter-act the drop in demand as well otherwise the floor could fall through on the oil price.

However i'd be interested in what brand shoe's rolandstar will be wearing, if he goes through that tread quick enough may be worth getting some Nike shares or something similar.

 

[tinhat]

I have WES and WESN as a result of originally having Coles shares. However I am confused about what is going to happen with WESN shares. I thought they were due to be converted or whatever at the end of September this year but haven't received any communications on this from Westfarmers nor can I find anything about it on their website . Can anyone shed any light on this? TYIA

They have until 7 November 2015 (eight years from the original notice) for the share price to get over $43.11 to avoid needing to issue additional shares to partially protected share holders (WESN holders).

Thus WESN shares are trading at a slight premium to WES shares because they have a sort of floor price to them in that shareholders will be topped up with additional shares if need be on 7 Nov 2015 to achieve an equivalence of $43.11 per share.

http://media.corporate-ir.net/media...ummarytermsasatJuly2011nochangestoOct2009.pdf

 

[rolandstar]

Started buying wes at $40.5
now $43.12
up over 6%
Wesfarmers is listed on the ASX with code wes
Owns Officeworks & Coles
I plan on spending $1600 at these stores this year
increasing their earnings

 

[Miss Hale]

They have until 7 November 2015 (eight years from the original notice) for the share price to get over $43.11 to avoid needing to issue additional shares to partially protected share holders (WESN holders).

Thus WESN shares are trading at a slight premium to WES shares because they have a sort of floor price to them in that shareholders will be topped up with additional shares if need be on 7 Nov 2015 to achieve an equivalence of $43.11 per share.

http://media.corporate-ir.net/media...ummarytermsasatJuly2011nochangestoOct2009.pdf

Thanks tinhat

 

[Gringotts Bank]

Cup and handle. As 'textbook' as it gets. Breakout on the cards.

 

[Muschu]

Cup and handle. As 'textbook' as it gets. Breakout on the cards.

It would suit me nicely if you're right as I topped up a few days ago. Seems to be travelling sideways but perhaps unlikely to move much further south. Then again......

 

[Ves]

Probably in the minority, but I don't think a market valuation of $50 billion plus seems unreasonable for this stock - 7-10% profit growth is not out of the question for a while yet.