Something that may happen if the ALP get in is that WES pharmacies may suddenly be relocated in to COL stores.somewhere near $30-$31 will get me interested ( to add more ) i already participate in the DRP and have a comfortable amount ( for me )
good luck if you buy in at this stage
X-factor is still the fate of Office-Works ( stay , sell, IPO or slice off a new property trust )
DYOR
Something that may happen if the ALP get in is that WES pharmacies may suddenly be relocated in to COL stores.
The Pharmacy Guild which has maintained a grip on where pharmacies may operate is a Liberal led mob. Their head who is a professor was touted for a Senate spot was the rumour up her for the LNP.
So I'll be buying both on any weakness.
gg
retail tends to be flexible and adaptable ( or die a sudden death )All retail has been slammed. So much for it being a defensive sector.
All retail has been slammed. So much for it being a defensive sector.
“Target has been the latest big US retailer – covering both consumer staples and discretionaries – to trim its profits forecasts,” said an analyst.
This is a reasonable concern for holders of WES.With Bunnings a majority contributor to WES, its only fair to ask if the new set of circumstances will have an even greater impact than last week's selldown (nearly 7% on Thursday)?
Comment from elsewhere:
Probably applies across the board; staples have more attraction in the current uncertainty.
- Surging labour and freight costs are a given
- Empty shelves during the pandemic may not translate to similar consumption patterns now
- Inflation is forcing consumers to conserve cash for groceries and essentials, and less discretionary spend
- Retailers who sell physical products have to guess what customers will buy months in advance
- The cost of running short is immediate lost revenue and market share. The cost of ending up long is registered in discounts on unpopular lines
- Retail is a low margin business. It requires careful management of working capital and supply chains. The smallest errors ripple through to profitability and cash flow.
also there are all sorts of disruptions in the building industry ( Bunnings presents itself as a wholesale/retail outlet so a fair chunk of those customers are building industry professionals ) the home improvement ( and house-flipping ) game can only do so much when incomes come under pressure , a lot of that is because of regulations limiting what a non-tradesman can do to a propertyWith Bunnings a majority contributor to WES, its only fair to ask if the new set of circumstances will have an even greater impact than last week's selldown (nearly 7% on Thursday)?
Comment from elsewhere:
Probably applies across the board; staples have more attraction in the current uncertainty.
- Surging labour and freight costs are a given
- Empty shelves during the pandemic may not translate to similar consumption patterns now
- Inflation is forcing consumers to conserve cash for groceries and essentials, and less discretionary spend
- Retailers who sell physical products have to guess what customers will buy months in advance
- The cost of running short is immediate lost revenue and market share. The cost of ending up long is registered in discounts on unpopular lines
- Retail is a low margin business. It requires careful management of working capital and supply chains. The smallest errors ripple through to profitability and cash flow.
i participate 100% in the WES ( and BWP ) DRP ( with no current plans to sell or reduce either of them )This is a reasonable concern for holders of WES.
Including yours truly.
I believe I'll stick with them though.
gg
Yes I'm not sure WES is making the best use of catch, it seems to be lagging behind my deals which WOW has just taken a big bite of, IMO the retail market seems to be evolving into online model I'm not sure WES is keeping pace.i participate 100% in the WES ( and BWP ) DRP ( with no current plans to sell or reduce either of them )
if the WES price continues to drop will i add extra ( possibly later on , even WES has a couple of millstones aka K-Mart and Target , although Office-Works could either become a gem or an albatross )
i will probably stick BUT will be watching carefully
In a word - Yes.With the results coming up, and currently a very Low IV Rank, is it worth a Long Straddle on WES ?
Gunnerguy
We did the same, but sold COL into the SMSF, it was an interesting exercise, but at least now we have a cost base for WES, after a zillion years of dividend re investment.Rather foolishly, I sold my COL shares, that came through WES, last FY.
Doing the tax return, I had to work out a CGT cost base; the numbers are quite interesting
1993. ...Bought 1000 WES @ $7.50. Brokerage $150.00, Stamp Duty $22.50. Net Cost $7,672.50
As well as a steady flow of, and generally increasing, twice-yearly dividends, and the occasional special divi, there have been numerous Returns of Capital along the way
The cost base of a Wesfarmers shareholder’s Wesfarmers Post-CGT shares just before the demerger should be allocated: 71.09% to their Wesfarmers Post-CGT shares; and 28.91% to their corresponding Coles shares.
- 12/08/1998. $0.50 a share
- 18/12/2003. $2.50 a share
- 18/02/2005. $1.00 a share
- 26/11/2013. $0.50 a share . Consolidated by 0.9876 to 988 shares
- 16/12/2014. $0.75 a share . Consolidated by 0.9827 to 971 shares
It all means the CG for the sale of COL holding is quite high (and note the Brokerage back then + Stamp Duty) . Will continue to hold the WES.
Too true, @sptrawler ; how necessary it is to keep records AND keep it simple.We did the same, but sold COL into the SMSF, it was an interesting exercise, but at least now we have a cost base for WES, after a zillion years of dividend re investment.
I said to the wife, staple all that together and put a date on it. ?
Yes the GFC was the biggest over reaction con job I've ever seen, WES was a magic pickup then, so was CSL $27 and MQG $15.Too true, @sptrawler ; how necessary it is to keep records AND keep it simple.
Looking back at WES, I had a few DRPs 2001 and 2002 which were transferred to SMSF, then a trade, plus two sets of rights issues (AND note the big diff around the time of the GFC - amazing how the 2nd offer was 60% lower in just 9 months.) ; these last issuances were also transferred to SMSF at an advantageous price ...
- 18/06/2004 BUY 150 @ $28.55,
- 28/02/2006 SOLD 150 @ $36.47,
- 02/06/2008 RIGHTS 132 @ $29.00.
- 03/03/2009 RIGHTS 428 @ $13.50.
- 03/03/2009 Oversubscribe 172 @ $13.50.
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