WOW - Woolworths Group

[nulla nulla]

And then there are those of us who take something from both approaches. Plenty of people will choose their universe of potential stocks on the basis of their sound fundamentals, but find an understanding of price action adds far more to their profitability than just focusing on what someone estimates 'should' be 'value' for that company.

I don't see any need to rubbish or deride any approach. There are also going to be different aspirations at different times of life, whether generating an income from capital or alternatively regarding investing as a sideline interest whilst living on a salary when obviously it would be more realistic to take a longer term approach if that was what appealed to you.

Thank you Julia. The forum should applaud your calm objectivity and even handedness. F/A, T/A and E/W. Sifting through the "value" , "price action" and views expressed , while generating income, protecting investment and all the time showing respect for the opinions of others.

There is a need for a discussion thread
NOT T/A V F/A
But a place where understanding of each can be shared.
Those interested should be able to share views over there.

Surely this thread is as good as any other, given this thread is where all the out pouring of opinions is actually happening?



And to throw my two cents into the pot, here we are at $29.00 ish (again) and the t/a question has to be whether wow can bounce off this point, as a support level (double, triple bottom, whatever), or whether the "herd" mood (analyst driven) is so negative, wow will now trend lower to tests new lows? Well?

 

[DeepState]

...wealth effect....

That's almost certainly one pathway through which actions are affected by price movements or perceptions about future profits. Whilst such things influence a person's actions, other matters are generally more overwhelming (incl 'animal spirits' apart from the wealth effect although these can be hard to disentangle). People effect economic fundamentals. These, in turn, effect people. People also effect people. Then the way it all comes together impacts outcomes as well. eg, If the nature of banking changes, the way in which this all works out changes.

This has been shown to create some degree of over-reaction in financial variables which, maybe, could be a basis in support of EW in terms of the fact that price pathways tend to zig-zag in a way which mean reverts to some degree. As for the precise specifics of EW... and what it means for T/A or F/A... all the best with it everyone.

 

[tech/a]

Well

Volume dropping as the bottom is being tested.
The longer the consolidation at these levels continues the more bullish it will be.
Corrective moves generally take 3 legs ABC.
So far A

If we don't get a rise toward filling the gap then A is still forming
Not good for the depth of this correction.
Current bar is not showing supply nor demand.
The first 2 bars are similar in range with falling volume.
No supply----
Very high volume bars reverse for a period just about every time.
The depth of reversal and the length of consolidation will set the scene going forward
But from what I CURRENTLY see this has some more correcting to do.

 

[Triathlete]

And to throw my two cents into the pot, here we are at $29.00 ish (again) and the t/a question has to be whether wow can bounce off this point, as a support level (double, triple bottom, whatever), or whether the "herd" mood (analyst driven) is so negative, wow will now trend lower to tests new lows? Well?

I personally will be waiting for some clearer signs as to which way WOW will move.

I can only see it moving between the trend lines at present and will be waiting for a break on either side before making a more informed decision.

Although I will say that it is still in a downtrend and has been since May 2014 and nothing has changed yet.

 

[nulla nulla]

The daily turnover is returning to normal levels. However the share price has gapped down from the moving average by about $1.70. The last three days has seen trading ranging between $29.20 to $29.80 (give or take a couple of cents). It is possible that the fully franked dividend of $0.65 is drawing in some investors which in turn is under pinning the share price.



I snuck a small trade in, buying at yesterdays close of $29.35 and selling into todays close at $29.83. I will be looking for a re-entry tomorrow, particularly if the price dips anywhere near $29.40. I also picked up another small parcel yesterday at $29.62 which we will likely hold for the combination of the dividend and (if necessary) a longer hold for the capital gain combo.

 

[UMike]

The daily turnover is returning to normal levels. However the share price has gapped down from the moving average by about $1.70. The last three days has seen trading ranging between $29.20 to $29.80 (give or take a couple of cents). It is possible that the fully franked dividend of $0.65 is drawing in some investors which in turn is under pinning the share price.

....

I snuck a small trade in, buying at yesterdays close of $29.35 and selling into todays close at $29.83. I will be looking for a re-entry tomorrow, particularly if the price dips anywhere near $29.40. I also picked up another small parcel yesterday at $29.62 which we will likely hold for the combination of the dividend and (if necessary) a longer hold for the capital gain combo.

How'd you go.

In a moment of madness(????) I snapped up a decent parcel today.
Ex Div tomorrow.

Time will tell.

 

[nulla nulla]

How'd you go.

In a moment of madness(????) I snapped up a decent parcel today.
Ex Div tomorrow.

Time will tell.

I unloaded the second parcel at $30.03 the following day locking in profit. Tried for a re-entry in todays close with a bid of $29.35 but got knocked out in the dying seconds of the auction when the match price jumped to $29.36. Will watch the action tomorrow, I thought the ex-div date was later in the month, 18 March 2015?

 

[sptrawler]

I unloaded the second parcel at $30.03 the following day locking in profit. Tried for a re-entry in todays close with a bid of $29.35 but got knocked out in the dying seconds of the auction when the match price jumped to $29.36. Will watch the action tomorrow, I thought the ex-div date was later in the month, 18 March 2015?

I thought the same nulla, hoping for a big push down, before ex dividend date.

 

[UMike]

I unloaded the second parcel at $30.03 the following day locking in profit. Tried for a re-entry in todays close with a bid of $29.35 but got knocked out in the dying seconds of the auction when the match price jumped to $29.36. Will watch the action tomorrow, I thought the ex-div date was later in the month, 18 March 2015?

Yea the Westpac Broking site just agve me another reason to find a better platform to trade. 18/3/2015 is correct.

 

[sptrawler]

In today at $29.30, knowing my luck $27 on Monday.lol
Only joking ex dividend wednesday, hope to see price surge mon/tues.

 

[notting]

In today at $29.30, knowing my luck $27 on Monday.lol
Only joking ex dividend wednesday, hope to see price surge mon/tues.

So you will be selling sometime Tuesday at the latest?

 

[sptrawler]

So you will be selling sometime Tuesday at the latest?

If there is a couple of dollar lift, yes, otherwise take the dividend and sit.

 

[pinkboy]

If there isn't sufficient 'lift' in the next 2 trading days, $29 could be tested. It's currently not in ideal territory to be mucking about just for the dividend.

pinkboy

 

[sptrawler]

If there isn't sufficient 'lift' in the next 2 trading days, $29 could be tested. It's currently not in ideal territory to be mucking about just for the dividend.

pinkboy

Depends how much you need dividends and the associated risk. Long term, WOW have generally been trading between $29 - $33, my assumption is they will continue to do so.
Obviously that is, unless some really bad news is forthcoming, but as we all know there are no sure bets in the share market.
People still have to eat and WOW have a big footprint. Their model may need tweaking, but that is the case with most business models from time to time.

 

[UMike]

In today at $29.30, knowing my luck $27 on Monday.lol
Only joking ex dividend wednesday, hope to see price surge mon/tues.

I'm expecting it to trade slightly lower on Monday. I'm hoping to pick some more up.
Ex Dividend will see it move well below the $29.00 mark.

A long term trade imo.

 

[sptrawler]

I'm expecting it to trade slightly lower on Monday. I'm hoping to pick some more up.
Ex Dividend will see it move well below the $29.00 mark.

A long term trade imo.

From my perspective being self funded, WOW is one of the lower risk shares IMO, and with their dividend around 5% seems better value than term deposit.
Also with the ongoing downturn, WES and WOW appear to be up there with the banks, for stability.

You have to park your money somewhere, in these times of uncertainty and when you are dependant on it for income, a modicum of safety is required.

 

[nulla nulla]

Woolworths seems to be finding support around the $29.00 level, give or take a few cents.

 

[Triathlete]

Woolworths seems to be finding support around the $29.00 level, give or take a few cents.

You might be right Nulla Nulla.

However from a technical view both the weekly and monthly charts are still both down so from a medium to longer term view I would not be in any hurry to jump in just yet unless you are interested in short term trading the stock.

It will be interesting to see what happens over the next 3 months to WOW.

 

[Triathlete]

Hi Rimtas

I feel that an initial target price of between $27.82 and $26.90 which is (261.8 % wave B) by my calculation is likely.

My previous charts showed $31 , $29 and $26 as the strongest levels of support but not feeling at all confident with WOW at the moment.

Cannot see anything positive from the technical to start buying yet. Just sitting on the sidelines should be an interesting few weeks.....

your thoughts!

Rimtas Now that we are at $27.38 what are your latest views on WOW from here?

 

[tech/a]

All as plan from my December post.