WES - Wesfarmers Limited

divs4ever said:

Dona Ferentes said:

well, I think your 'onward and upward' target, aspirational perhaps, of $100 was optimistic, but it's a LT play for me.

And not for banal reasons, but rather by having a coupl'a thou' shares there in the portfolio, I feel I can just have WES as a sectoral allocation , and I can get on with trying to chase performance in more volatile, exciting places, which demand my attention

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not me , but am not rushing to buy extra at current prices either

i participate in the DRP ( so far )

would be more interested in buying when around $30

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farmerge said:

@Garpal Gumnut Certainly not me.

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It has been steadily gaining over the last 3 years and approaching a possible breach of $70. However it seems to be faltering at this. I just wondered if the Goyder effect might be in play after his setbacks at QAN and WDS. Will it reverse?

Even the mighty fall. It would be good if WES moved sideways and consolidated just under $70 for six months ar so. I now do not believe it will get to $100 this calendar year.

gg

Garpal Gumnut said:

It has been steadily gaining over the last 3 years and approaching a possible breach of $70. However it seems to be faltering at this. I just wondered if the Goyder effect might be in play after his setbacks at QAN and WDS. Will it reverse?

Even the mighty fall. It would be good if WES moved sideways and consolidated just under $70 for six months ar so. I now do not believe it will get to $100 this calendar year.

gg

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a much higher share price will just make it more attractive to retire from the DRP , as i doubt they can rise dividends to maintain a 5%+ yield on the current share price as it rises , but if Goyder goes who will replace him , it is not as though Australia is awash with capable directors the few we have are already very busy ( especially Chairman candidates that often wear four or five hats )

Garpal Gumnut said:

It has been steadily gaining over the last 3 years and approaching a possible breach of $70. However it seems to be faltering at this. I just wondered if the Goyder effect might be in play after his setbacks at QAN and WDS. Will it reverse?

Even the mighty fall. It would be good if WES moved sideways and consolidated just under $70 for six months ar so. I now do not believe it will get to $100 this calendar year.

gg

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@Garpal Gumnut Possibly not going to hit anywhere near $100 mark this year, but is a powerhouse of a well run company, but unfortunately is no longer a company of what its name says.

I’ll love it more when it gets to a reasonable buy.

Gretsch said:

I’ll love it more when it gets to a reasonable buy.

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Hmmm Mr Gretsch Can't really seeing WES dropping through the floor in the foreseeable future to be a "reasonable buy-in price".

farmerge said:

Hmmm Mr Gretsch Can't really seeing WES dropping through the floor in the foreseeable future to be a "reasonable buy-in price".

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that might depend on IF WES does another major divestment ( or asset sale ) my last top up was shortly after the COL demerger

and has turned on a dime..

Gretsch said:

I’ll love it more when it gets to a reasonable buy.

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but what's reasonable?

from around the traps:

Bunnings and Kmart owner Wesfarmers' 'limited avenues' for earnings upgrades and cost of living pressures on its consumers has triggered a downgrade by analysts at Morgan Stanley.

Wesfarmers' near 3 per cent drop in share price to $64.43 is weighing on the broader weakness in the sharemarket with the consumer discretionary sector the worst performer.

Morgan Stanley's note, led by equity analyst Melinda Baxter, states Wesfarmers' share price re-rating since lows in October last year has been driven by multiple expansion (75 per cent) versus earnings upgrades (25 per cent). "With global and domestic peers de-rating since March highs, we see elevated risk of underperformance given WES's lofty valuation".

While Kmart's long-term expansion seems compelling, she says, margins look to have peaked near term and top line growth is already factored into consensus estimates. Likewise, the defensive nature of Bunnings revenue could be overshadowed by flat margins given lagged impact of wage increases and market weakness. Wesfarmers is now downgraded to underweight at a target price for $56.20, from equal-weight.

from The Australian

Is Wesfarmers considering releasing online marketplace Catch?​

Four years on from buying online marketplace Catch, there’s suggestions that Wesfarmers could be reassessing the future for the business that was supposed to enhance the digital and e-commerce capabilities of its operations, including Kmart. The Perth-based conglomerate continues to put Catch in the category of businesses which will help the company’s future earnings growth.

But after years of losses, could managing director Rob Scott be making the call to cut his losses? There’s a view in the market that may be the case.
Mr Scott is known for his pragmatic and hard-nosed approach to deals that have not worked out for the company.... But the challenge for Wesfarmers with Catch is that it’s already been integrated into the company’s online retail business, so how does it unscramble the egg?

Even if Catch was on the block, what party would be the buyer? ....

..Catch made a $41m loss for the six months to December.

Dona Ferentes said:

from The Australian

Is Wesfarmers considering releasing online marketplace Catch?​

Four years on from buying online marketplace Catch, there’s suggestions that Wesfarmers could be reassessing the future for the business that was supposed to enhance the digital and e-commerce capabilities of its operations, including Kmart. The Perth-based conglomerate continues to put Catch in the category of businesses which will help the company’s future earnings growth.

But after years of losses, could managing director Rob Scott be making the call to cut his losses? There’s a view in the market that may be the case.
Mr Scott is known for his pragmatic and hard-nosed approach to deals that have not worked out for the company.... But the challenge for Wesfarmers with Catch is that it’s already been integrated into the company’s online retail business, so how does it unscramble the egg?

Even if Catch was on the block, what party would be the buyer? ....

..Catch made a $41m loss for the six months to December.

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Good pickup @Dona Ferentes .

If I were in Rob Scott's shoes I would give Catch away. It is a dog. I'd suggest Little Richard be set to asking 1000 consecutive people in any shopping centre in Australia have they ever bought off Catch. He'd be lucky to get one. As far as I know it is the board's fault that Catch is still on the books. Scott has gone up in my estimation.

gg

I might use this post @debtfree for my monthly post in the Competition.

gg

Dona Ferentes said:

from The Australian

Is Wesfarmers considering releasing online marketplace Catch?​

Four years on from buying online marketplace Catch, there’s suggestions that Wesfarmers could be reassessing the future for the business that was supposed to enhance the digital and e-commerce capabilities of its operations, including Kmart. The Perth-based conglomerate continues to put Catch in the category of businesses which will help the company’s future earnings growth.

But after years of losses, could managing director Rob Scott be making the call to cut his losses? There’s a view in the market that may be the case.
Mr Scott is known for his pragmatic and hard-nosed approach to deals that have not worked out for the company.... But the challenge for Wesfarmers with Catch is that it’s already been integrated into the company’s online retail business, so how does it unscramble the egg?

Even if Catch was on the block, what party would be the buyer? ....

..Catch made a $41m loss for the six months to December.

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@Dona Ferentes Going back a couple of CEO's what was considered poorly performing assets were got rid of.
Wesfarmers (the original namesake) got the chop because it was below the required 12% profit line.
Another was Wesfarmers Federation Insurance.
Both were well performing companies within the conglomerate's tightly held group.
I fail to see how Catch will be left sitting on the bench with a minus against it's name.

Garpal Gumnut said:

Good pickup @Dona Ferentes .

If I were in Rob Scott's shoes I would give Catch away. It is a dog. I'd suggest Little Richard be set to asking 1000 consecutive people in any shopping centre in Australia have they ever bought off Catch. He'd be lucky to get one. As far as I know it is the board's fault that Catch is still on the books. Scott has gone up in my estimation.

gg

I might use this post @debtfree for my monthly post in the Competition.

gg

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@Garpal Gumnut Make that 1001.

Garpal Gumnut said:

Good pickup @Dona Ferentes .

If I were in Rob Scott's shoes I would give Catch away. It is a dog. I'd suggest Little Richard be set to asking 1000 consecutive people in any shopping centre in Australia have they ever bought off Catch. He'd be lucky to get one. As far as I know it is the board's fault that Catch is still on the books. Scott has gone up in my estimation.

gg

I might use this post @debtfree for my monthly post in the Competition.

gg

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@Garpal Gumnut Wesfarmers do seem to have a habit of picking pretty good CEO's. Maybe it is the board of WES that needs a good swift kick about CATCH!!!!

biggish dump at $67 on Friday close, and selling continues

Dona Ferentes said:

biggish dump at $67 on Friday close, and selling continues

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I never thought that anyone could stuff up this big conglomerate.

But then, after QAN, WDS and the AFL Little Richard is on a roll. He needs to be retired.

gg

Garpal Gumnut said:

I never thought that anyone could stuff up this big conglomerate.

But then, after QAN, WDS and the AFL Little Richard is on a roll. He needs to be retired.

gg

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@debtfree One of my picks in the 2024 Competition.

I have noticed a fall off in the service and stock available at Bunnings and Officeworks.

Lithium is on the nose.

Little Richard is still in charge of a board that badly needs renewal. the good times roll until they don't. Its a sell for me now.

gg

Garpal Gumnut said:

I have noticed a fall off in the service and stock available at Bunnings and Officeworks.

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so have i , ( in Bunnings ) kind of hilarious to see a MTS franchise whip it's ass ( in certain areas ) in a moderate rural town/city

but WES seems to be still raking in the revenue

( i hold WES and BWP )

back above $70 and closing on ATH of earlier this year..


There have been no market announcements since early May.

Dona Ferentes said:

back above $70 and closing on ATH of earlier this year..
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There have been no market announcements since early May.

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For those holding WES it's a good news story

Director appointment

Wesfarmers today announced the appointment of Kate Munnings to the Board of Wesfarmers Limited as anon-executive director, effective from 1 August 2024.

Ms Munnings is an accomplished non-executive director and senior executive who has gained extensive experience in a career spanning a diverse range of roles, professions and industries. Notably, Ms Munnings has a background in healthcare and services, having commenced her career as a registered nurse before studying law, practising as a lawyer and working in senior executive and board positions in healthcare organisations.From 2020 to 2023, Ms Munnings was Managing Director and Chief Executive Officer of Virtus Health Limited, a provider of assisted reproductive services listed on the ASX prior to a take-private acquisition in2022.

From 2016 to 2020, Ms Munnings was Chief Operating Officer of Ramsay Health Care, leading the operational performance of its Australian hospitals and community centres.

Ms Munnings had a ten-year career with Transfield Services Limited from 2006 to 2016, finishing as Chief Executive Operations following her appointment as Chief Risk and Legal Officer and Company Secretary.

Ms Munnings’ prior experience includes as a partner at both Baker McKenzie and Corrs Chambers Westgarth, and work as a registered nurse in New South Wales.

Ms Munnings is a non-executive director of Ryman Healthcare Limited, Chair of the Digital Health Cooperative Research Centre and Chief Executive Officer of Vitrafy Life Sciences Ltd.

Previously, Ms Munnings was a director of the Ramsay Hospital Research Foundation and non-executive director of the South East SydneyLocal Health District.

Wesfarmers Chairman Michael Chaney said he was pleased to welcome Ms Munnings to the Board.“Kate brings a unique blend of experience that will complement the capabilities on our Board and aligns with our focus on delivering shareholder value over the long term.

Her background in healthcare will be particularly valuable as Wesfarmers continues to develop its Health division.

”Ms Munnings said she was excited to join the Wesfarmers Board.“I look forward to joining Wesfarmers and contributing the insights I have gained from my diverse experiences, particularly most recently within the health sector.”

Ms Munnings will stand for election at the Wesfarmers Annual General Meeting, scheduled to be held on 31 October 2024.

i hold WES

being a former holder of API ( another capital gain , but strategy frustration ) , i wonder ..

is WES considering an acquisition into healthcare service ( apart from the ones API currently provide )

seems to be a little over-qualified to just sit on the board and give general legal/business advice