WES - Wesfarmers Limited

[farmerge]

WES is one of my picks in the Y24 Comp @debtfree and I sold it during the year.

I am looking at getting back in. and WES is showing some signs of weakness at last. I'll not be greedy and buy in around $60. I haad predicted it would get to $100 this calendar year. this seems optimistic atm.

A chart.

View attachment 185356

gg

But still a top of the wozza table company

 

[Dona Ferentes]

WES is down 2 percent, not that far behind Metcash today.

MTS came out with a rather bleak view on the Hardware sector:

".. external market for the Independent Hardware Group (IHG) continued to be very challenging with Trade activity softening even further. It was also noted that retail store margins in IHG were facing pressure due to the impact of lower volumes on fixed costs.

"Since that update, there has been additional margin pressure in retail stores in September and October, particularly in Trade due to further sales weakness. This weakness in retail store sales has been offset by lower-margin wholesale sales.

 

[Garpal Gumnut]

Indeed @Dona Ferentes If Wes drops below $67.25 it will be in a proper downtrend with consecutive lower highs and lower lows. I didn’t realise hardware was doing so badly. I may hold off buying back in for a while.

Wes is one of my picks @debtfree in the 2024 comp. Enclosed is a chart. Some support coming up soon at $65.

gg

 

[divs4ever]

maybe a quick read of the MTS update , will add extra insight ( into the hardware sector )

i hold WES and bought back into MTS this morning on the dip

but hardware could be an interesting sector to watch , for spending/activity

i also note RWC ( i hold ) took a bit of a bashing today , also

maybe this economy isn't so resilient , after all ( note the affect of tobacco sales in the MTS update )

 

[farmerge]

WES Wesfarmers Limited Down a couple of dollars on last months end but still a top of the wozza company to hold.

 

[Garpal Gumnut]

This is my post for Nov in the Y24 Stock Comp @debtfree on WES and it is rather gobsmacking. It is from an email I received from Market Index www.marketindex.com.au.

I sold WES during the year and it headed higher ! I've been waiting to re-enter on a retracement. I may wait a bit longer as the sp has been falling faster than is decent recently.

Where does the revenue go?​

This excerpt from Wesfarmers’ AGM and it's a pretty big eye opener for where revenues go. Wesfarmers generated revenue just over $44 billion in FY24 $29 billion (or 65%) went to suppliers, there are more than 27,000 of them $6.3 billion or (14%) went to their 120,000 team members in wages $4.4 billion (10%) went on rent, freight and other services $0.5 billion (1.1%) went to governments in payroll taxes and other charges $200 million (0.5%) went to their lenders This leaves the company with about $3.6 billion in profit before tax or 8% of the original revenue. From here: $1.0 billion (29%) went to the Federal government as income tax $2.2 billion (61%) goes back to shareholders, including individuals and superannuation funds The remaining 10% (or about one per cent of the original revenue) went to retained earnings In other words, almost all the profit ended up outside the company.

gg

 

[Dona Ferentes]

In other words, almost all the profit ended up outside the company

I'd call them Margins.

 

[Garpal Gumnut]

I'd call them Margins.

Good point @Dona Ferentes . For non-finance people such as I the difference between profit and margin and their application is summarised quite well in this article.

Margin vs Profit - What Is It, Infographics & Key Differences

Guide to Difference Between Margin & Profit. We explain the differences using infographics, comparison table, and listing the key differences.

www.wallstreetmojo.com

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