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WES - Wesfarmers Limited

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my target ( pun intended ) for ( extra ) WES is $31-$32 but the current drop is a mixed blessing in should translate into a few extra DRP shares

there is very little chance of the API take-over cash making it's way into WES ( $wise the API holding is larger than the WES holding )
add in the new management changes , i will be watching without much excitement
 

I read somewhere sometime ago that WES had already approached Chemist Warehouse. CH are more likely to IPO.
 
Sean K said:
I read somewhere sometime ago that WES had already approached Chemist Warehouse. CH are more likely to IPO.
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WES and CH would be a great combo together.

The West is not as much in to blood letting as The East.

gg
 
A major factor in WES survival during the Covid-19 pandemic on the retail side of the conglomerate has been workforce participation and support.

Bunnings, Kmart and Officeworks have high worker loyalty.

They have treated their workers well in spite of lost days due to Covid lockdowns.

This bodes for WES going forward in to a full employment era for those who want to work.

To paraphrase Groucho Marx :

Outside of the Public Service, Wesfarmers is the workers' best friend.
Inside the Public Service it is too dark to see.

gg
 
This looks overdone to me. What's fundamentally changed in the past few months except a general market correction and the attempted drug deal?

 
Sean K said:
This looks overdone to me. What's fundamentally changed in the past few months except a general market correction and the attempted drug deal?

View attachment 137976
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Well I guess if you are going to use that reasoning, you need to have a longer time frame IMO, the last couple of years have been extraordinary. To use them as a guide to the future IMO is a bit of a long bow, Just my opinion.
Is Bunnings going to do better than it did during the lockdown inspired reno revolution, or the stimulus invoked housing building boom? Is Target going to maintain its slide into oblivion? Has KMart peaked?
IMO a lot of growth form here will have to come from the lithium hydroxide plant and the foray into pharmacies, again just my take on it and why I wont be topping up unless it gets to the $40-43 range.

 
Dona Ferentes said:
of course it went ex dividend 80c ff, yesterday
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sptrawler said:
Well I guess if you are going to use that reasoning, you need to have a longer time frame IMO, the last couple of years have been extraordinary. To use them as a guide to the future IMO is a bit of a long bow, Just my opinion.

View attachment 137978
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So, more like natural correction taking into consideration of general market and dividends, but long term still very solid.
 
Bunnings isn't a static beast; still building stores :
• Expansion of Bunnings’ commercial offer with rollout of Tool Kit Depot and completion of Beaumont Tiles acquisition

The Covid impact has been dramatic
• Around 34,000 store trading days, almost 20% of total store days, impacted by trading restrictions or closures
• COVID-related costs of c.$80m during the period, around half of which related to team member payments
... on the plus side, WES did $2.5billion in online transactions across their retailers

And I can't believe it was so long ago. Now in the ramp-up in development of Mt Holland lithium project
Oct 2019: Wesfarmers is focused on planning for decisions around building a lithium concentrator at the Mt Holland mine near Southern Cross, and the hydroxide plant.
and the Lynas play fell over back then. Will we expect another action in the forward facing minerals sector?

With API (it's not just Priceline). Should see a complete new sector that will use IT and pricing to establish a strong presence (and give CW a run for their money)
• Proposed acquisition of API, forming the basis of a new Health division

And then there is the ongoing focus on costs and efficiency
• Reinforced price leadership on everyday items
• Strengthened divisional e-commerce capabilities and expanded online ranges
• Invested in technology and supply chain initiatives

I notice there will be further refinements in the data and digital division
• New division to support the development of the Group’s data and digital ecosystem – Investing in foundations necessary to deliver great value, convenience and experiences to customers across the Group
• Repositioned Club Catch subscription program as OnePass in February 2022:
• Data and digital division reported as part of Corporate and Other for FY22, and then separately from FY23
• Additional detail at 2022 Strategy Briefing Day

....................................
now with a PE at 24, that is high. WES has got to kick the aspirational goals to keep growth.
 
IMHO I think about WES less like a business and more like MQG, when I buy it I am buying something like a "private asset ETF". I want some exposure to private/unlisted assets as a % of my equity allocation.
 
InsvestoBoy said:
IMHO I think about WES less like a business and more like MQG, when I buy it I am buying something like a "private asset ETF". I want some exposure to private/unlisted assets as a % of my equity allocation.
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MQG ?? , not SOL or GOW ( some others do similar ) but yes i can see your argument but more a LIC than ETF ( imo )
 
i should also throw in SVW although i don't know about the China exposure now with SVW , i think they have reduced that greatly
 
Wesfarmers' e-commerce unit Catch has had disappointing customer acquisition growth, amid competition from the likes of Kogan.com.

Over the half-year to 31 December, Catch added just 0.1 million customers to take its total to 3 million at the same time as Wesfarmers committed to investing in the business via increased marketing, recruitment, and tech spends.

Catch is set to be integrated into a new group known as Wesfarmers OneDigital from July 1, moving away from the Kmart and Target retail division, and former News Corp executive Nicole Sheffield will be charged with turning its performance around. Melbourne-based chief executive Peter Sauerborn will resign from the business on 30 June.

Catch’s earnings before tax loss widened by $29 million to $44 million over the half-year to December 31, and its total transaction value was up just 1 per cent. Total revenue fell 4.3 per cent to $315 million.
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I have been worried about Catch for a little while.

It is not user friendly and the name is a dog .

A new CEO, especially a female should get it moving.

I do hope I do not get reported for being sexist.

gg
 
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