WES - Wesfarmers Limited

WES is an evolving beast it has exited coal investments , sold parts of K-Mart looking rebrand Target , exited Coles acquired Kidman Resources , a work-wear/safety company

WES in 2011 is a fairly different empire to today

i suppose the other important question is ... after the Cap. Return and API take-over how big is the remaining war-chest and where is it likely to invest next

divs4ever said:

wouldn't that be a scary thought if you are a Myer shareholder ( i have held and been burnt with MYR in the past )

( say pharmacy , beauty and discontinued lines from K-Mart )

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Myer is like the old Bunnings family store, before WES bought them out, slow clunky and stuck in the 1950's.
Before WES bought out Bunnings no one shopped there, they were expensive and trading on memories, Alco gave them a hard time, so did Mitre 10, once WES took over the rest is history.
Chemist warehouse will be very, very nervous IMO.

divs4ever said:

WES is an evolving beast it has exited coal investments , sold parts of K-Mart looking rebrand Target , exited Coles acquired Kidman Resources , a work-wear/safety company

WES in 2011 is a fairly different empire to today

i suppose the other important question is ... after the Cap. Return and API take-over how big is the remaining war-chest and where is it likely to invest next

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Someone IMO, is going to build a battery gigafactory in Kwinana, there are all the ingredients there, no shipping costs, close to a major population source of workers, port facilities, industrial area, power station close by.
It is a no brainer, who does it is the $64k question.

i bought into WES initially in 2015 @ $42.07 , $40.35 and $39.50 ( although some of that was a result of swapping BKL shares @ $125 into WES )

and after the COL demerger i chose to buy extra WES , in preference to extra COL ( but i DID keep the COL )

so yes WES has been OK for me ( but i have done better elsewhere and MUCH worse in other places )

since WES has it's lithium project in South America , there isn't ( so far ) a big chance that would be WES

HOWEVER SVW should not be totally unexpected with a play like that ,it could organize several moving parts to such a project quickly

neither should BHP be totally forgotten

but let's see . it will probably be a foreigner flashing the big money

sptrawler said:

10 years ago when the GFC happened WES were $12, even if you bought them 5 years ago and included the 1 for 1 Coles shares, then add that onto the current WES price it wasn't a bad buy.
Check out WBC over the same period.

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It fell then because the frog had a substantial WES packet with a SL . once SL triggered,and wes sold at lowest, went up.
Should open the frog contrarian newsletter
"Just do not do what i do"?

divs4ever said:

since WES has it's lithium project in South America , there isn't ( so far ) a big chance that would be WES

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I don't know where you are getting your info from @divs4ever .

Wesfarmers, together with joint venture partner SQM, announced joint approval of the Final Investment Decision of the Mt Holland lithium project in February 2021. Covalent Lithium is continuing project development and commencing construction of the Mt Holland lithium mine, concentrator and Kwinana refinery following the receipt of critical regulatory approvals in July 2021. First production from the refinery is expected in the second half of calendar year 2024. WesCEF will continue to work on opportunities to better utilise or expand its existing operations through targeted investments and the use of data and analytics.

i won't be holding my breath on Kwinana

this MIGHT be more interesting mid-term

Coregas focuses on hydrogen pilot The transition to a hydrogen economy is underway, and Australia is well-positioned to play a significant role thanks to its renewable resources and proximity to energy-hungry economies. Coregas is involved in Australia’s largest hydrogen project — the Hydrogen Energy Supply Chain gasification plant in the Latrobe Valley, Victoria — which will see Coregas aiming to load the world’s first liquid hydrogen ship in Victoria for transport to Japan. It aims to demonstrate the liquid hydrogen supply chain from production to shipment. If successful, it could lead to the establishment of one of the largest hydrogen hubs in the world. Coregas has also focused on developing domestic hydrogen mobility solutions. With support from the Port Kembla Community Investment Fund, Coregas aims to commission the first Australian hydrogen refuelling station for trucks. The station will have daily capacity for 10 hydrogen-powered trucks — also known as fuel cell electric vehicles. The first two hydrogen-powered prime movers will operate in the Coregas fleet from early 2022. Their emissions profile is around half that of diesel prime movers. There are more than 100,000 heavy trucks in Australia, so transitioning heavy transport will reduce carbon emissions and also noise, and particle pollution.

my memory must be faulty , i can't find what i wanted in the last annual report ( and am only half way through it ) but if i read another mention of diversity , climate consciousness or the rest of the virtue-signalling , fair dinkum , i am going to throw up

one thing i am convinced of though , is i am NOT in any hurry to add extra WES above $35

It sounds like we are going to have more hydrogen hubs than you can poke a stick at, I see where you are coming from @divs4ever , there is a lot of irons going in the fire ATM.
Between WES, FMG and the NSW Government, it is a bit like, here a hub, there a hub, everywhere a hub hub. ?

sptrawler said:

10 years ago when the GFC happened WES were $12, even if you bought them 5 years ago and included the 1 for 1 Coles shares, then add that onto the current WES price it wasn't a bad buy.
Check out WBC over the same period.

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Yeah, I didn't even look at the % gains compaired. It's done well. Probably an easy way to look at long term performance if you're a long term buy and hold person. I was commenting on the reason why WES fell recently though. Looks like it was partly due to a general market correction but it went much harder like BHP and FMG, but they were due to IO prices. What happened on 20 Aug? Dunno

Sean K said:

Yeah, I didn't even look at the % gains compaired. It's done well. Probably an easy way to look at long term performance if you're a long term buy and hold person. I was commenting on the reason why WES fell recently though. Looks like it was partly due to a general market correction but it went much harder like BHP and FMG, but they were due to IO prices. What happened on 20 Aug? Dunno

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From memory, and someone correct me if I'm wrong, but the WES share price dropped to about $38, when the Delta strain caused some Bunnings stores to be closed, which was the first time since the pandemic started.
This was a market over reaction, which turned out to be a golden buying opportunity, in hindsight.

sptrawler said:

From memory, and someone correct me if I'm wrong, but the WES share price dropped to about $38, when the Delta strain caused some Bunnings stores to be closed, which was the first time since the pandemic started.
This was a market over reaction, which turned out to be a golden buying opportunity, in hindsight.

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$30 in the dark days of April 2020 , but no, a run up from there, and only a retracement from $56 to $49 in Feb this year. Sharp sell-off ... and the second drop from $67 to $54 late Aug to early Oct

Dona Ferentes said:

$30 in the dark days of April 2020 , but no, a run up from there, and only a retracement from $56 to $49 in Feb this year. Sharp sell-off ... and the second drop from $67 to $54 late Aug to early Oct

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I must have been thinking of another share, you are spot on @Dona Ferentes, I'm hopeless finding info on a mobile phone. lol

WES are not finished yet with their t/o bid for API, the pharmacy group being pursued by WOW.

A letter has been sent to Professor Twomey the head of the Pharmacy Guild for distribution to chemists by the professor warning of the capitalist running dog intentions of WOW against the white-coated slow typists. It would appear WOW intend imprisoning all chemists in their fresh food section and make them wear clown suits and Collingwood scarves while medicines are sold cheaper than they are now to punters.

Either way WES are ahead. If their tilt at API succeeds they will be slow typing the sticky notes on bottles of pills in ye old style chemist shops at a profit.

If they lose they sell their 19.9% stake acquired a few months ago at a premium.

gg

WES had a slump in the 3rd quarter but up about 14% since early October. Looking good to me.

Total Shareholder Return (avg annual rate)

WES have depth in their structure and function.

A conglomerate who learn from mistakes and are forward looking. They have been good to me.

A good stock in a crash or recovery.

A CY22 Competition pick for me.

gg

Best team in the country.

API notes that Woolworths Group Limited (ASX:WOW) has withdrawn its non-binding indicative proposal to acquire 100% of the shares in API announced on 2 December 2021.

As announced to the market on 8 November 2021, the Scheme Implementation Deed with Wesfarmers Limited remains in place and is on track for completion in the first quarter of calendar year 2022.

In terms of the SID, it is proposed that a wholly owned subsidiary of Wesfarmers will acquire 100% of the shares in API that Wesfarmers does not already own, for cash consideration of $1.55 per API share. The cash consideration of $1.55 is to be reduced by the cash component of dividends paid of up to 5 cents per API share, which includes the 2 cents fully franked final dividend for the year ended 31 August 2021 that was paid in December 20

Woolworths Group withdraws its non-binding proposal to acquire API Woolworths Group refers to its previous announcement on 2 December 2021 regarding its non-binding proposal to acquire 100% of the shares in Australian Pharmaceutical Industries Limited (API) at a cash offer price of $1.75 per share.
Following the completion of a comprehensive due diligence process, Woolworths Group has advised API that it has withdrawn its proposal as it has not been able to validate the financial returns it requires in line with the Group’s capital allocation framework. Woolworths Group CEO, Brad Banducci, said: “We are grateful to the Board and leadership team of API for their constructive engagement and support throughout the due diligence process.”

DYOR

i hold WOW ( 'free-carried' ) , WES , API and SIG

let's see if SIG comes back with a second offer , after all they have the obvious synergies

PS i am still hoping the take-over ( by anybody ) doesn't succeed ( and a scrip deal by SIG is my second best outcome , if it were to return )

WES didn't like 60 bucks. Dropping into a more interesting area. 5 year weekly log, 1 year daily linear.

well the WES take-over of API isn't a done deal , and WES is still trying work out what to do with Office-Works

so while WES still has plenty room to move what are you buying for your ( nearly ) $60

WES + API , maybe , WES - Office-Works maybe

a P/E of 27 and div. yield of 3.1% ( plus franking ) isn't that inspiring unless you are thinking WES is a growth stock

now my average SP is $37.12 ( the slightly more than half bought after the COL demerger ) isn't so flash , but at least i have a toehold that i can average down should the opportunity arrive