WOW - Woolworths Group

[Dona Ferentes]

welcome @Powerup. I hope you get in the swing of things, now you've made post #1. Specific recommendations aren't a good idea, but general advice is to learn as much as you can, and find what works for you.

 

[divs4ever]

G'day everybody, it’s great knowledge shared on this forum and very interesting opinions, I find I lot of it goes over my head tho. At times it is overwhelming for me as I am still very new to stock investing. I really enjoy learning about stock investing, from reading the posts here. Well done for being very generous with your time and an informative online community.


In regard to WOW would this be a good choice to invest now, like one of those Warren Buffett quoted situation "be greedy when others are fearful" or is it going to continue dropping, does it still have a ways to go down further. – what do you reckon?

$25 a share ( of less ) is the beginning of 'fearful ' ( that some share-holders are losing serious cash )

currently this is 'a little nervous ' and they have every right to be half the results don't even keep up with official inflation ( so are rather weak )

 

[finicky]

Warren Buffett quoted situation "be greedy when others are fearful"

That Buffett quote can lead people up the garden path. Sure he likely did that, but it would have been in the context of having studied the situation in depth under the light of his tight-arse experience and coming to the considered view that the herd of investors were wrong and were infecting others with negativity.

Recommending single stocks to someone inexpetienced is a minefield, tempting though it is. Also against the rules.

If you want to avoid early costly mistakes maybe consider Listed Investment Companies (LICs) or Exchange Traded Funds (ETFs) that comprise numerous stocks? @Belli posts on these.

 

[DrBourse]

I posted the following @ 9.15am this morning 21/2/24 in another Forum - thought it may be useful in this Forum as well.......

Not sure why everyone is surprised about the WOW pullback..
My analysis dated 28/8/23 has the WOW IV @ $31.57, so WOW was abt $6.00 OVERVALUED then..
WOW is still abt $2.30 OVERVALUED – B Careful…
Market News on WOW is Crap…
ST & MT Inds on WOW are all Crap…
TA in General on WOW is all CRAP…
Future ST FA will take a Hit IMO, that in turn should lower the WOW IV even further…

B Careful - DYOR

 

[Garpal Gumnut]

G'day everybody, it’s great knowledge shared on this forum and very interesting opinions, I find I lot of it goes over my head tho. At times it is overwhelming for me as I am still very new to stock investing. I really enjoy learning about stock investing, from reading the posts here. Well done for being very generous with your time and an informative online community.


In regard to WOW would this be a good choice to invest now, like one of those Warren Buffett quoted situation "be greedy when others are fearful" or is it going to continue dropping, does it still have a ways to go down further. – what do you reckon?

As @Dona Ferentes said, nobody will tell you whether to buy or sell a stock here unfortunately. I've been tracking Coles for many years and have only started looking at WOW recently as I felt it was a bit interesting and wanted to look at an entry point. I find it very interesting that the CEO has resigned, so just on that info I'm more interested. So you don't need to be a great investor like some here on ASF or to be able to run a boat you bought at BCF.

CEO's in outfits such as WOW are paid inordinate amounts of free money just for being CEO, often in the form of performance stock and other bonuses attached to performance. I believe he resigned recently over something he said or did on a television interview, and then shortly afterwards spit the dummy and resigned. Now ... I don't watch television but I do know a bit about greed as I am the most greedy person bar none that I know, and if I were CEO of WOW and the trade off between stress and Free money was good I wouldn't have resigned.

So look at the leprechaun at Qantas. He got boIIocked mightily while he was CEO, but he stuck in and negotiated enormous amounts of free money as payoff for all the crap that was thrown at him. Because he saw a profit. And no doubt he was stressed, but he handled it well and the monkeys at Qantas paid him inordinately well. He is my hero.

Now ... the fact that this joker at WOW ( I don't even know his name, and don't need to ) has resigned makes me think he was possibly looking to resign anyway. And that makes me think his free money was not sufficient to make up for the good possibility that he will die earlier because of the stress of being CEO at a company that he may not see doing all that well in the short to medium term, and possibly long term. So he got stressed at an interview I believe by one of those Ch7 or ABC old dolls who give CEOs a hard time. And good on the old dolls. It may not have been an old doll. Maybe a chick. who knows but it doesn't matter. That is their job. The chicks. His job is to stick at a job that should pay enormous amounts of free money and he can laugh like the leprechaun did at he monkeys who paid him free money

So that is why I'm now following WOW. Will it fall in price? Who knows. I hope it does. How far will it fall. Who knows. I hope it falls greatly and quickly. That would be good for me. When to buy? Keep on following people on ASF who don't buy chandlery and vessels at BCF. @divs4ever seems to buy cheap. I'm not good at buying at the bottom, but I am ok at not buying at the top. And I'm looking at buying. But not right now. Then again I could be wrong. Disclosure : I don't own a boat and don't want to own a boat.

gg

 

[TimeISmoney]

They made the news lately for all the wrong reasons and it wouldn't surprise me if the regulators go after them.

 

[finicky]

Woke left agenda their ABC.
It's a conspiracy

 

[divs4ever]

As @Dona Ferentes said, nobody will tell you whether to buy or sell a stock here unfortunately. I've been tracking Coles for many years and have only started looking at WOW recently as I felt it was a bit interesting and wanted to look at an entry point. I find it very interesting that the CEO has resigned, so just on that info I'm more interested. So you don't need to be a great investor like some here on ASF or to be able to run a boat you bought at BCF.

CEO's in outfits such as WOW are paid inordinate amounts of free money just for being CEO, often in the form of performance stock and other bonuses attached to performance. I believe he resigned recently over something he said or did on a television interview, and then shortly afterwards spit the dummy and resigned. Now ... I don't watch television but I do know a bit about greed as I am the most greedy person bar none that I know, and if I were CEO of WOW and the trade off between stress and Free money was good I wouldn't have resigned.

So look at the leprechaun at Qantas. He got boIIocked mightily while he was CEO, but he stuck in and negotiated enormous amounts of free money as payoff for all the crap that was thrown at him. Because he saw a profit. And no doubt he was stressed, but he handled it well and the monkeys at Qantas paid him inordinately well. He is my hero.

Now ... the fact that this joker at WOW ( I don't even know his name, and don't need to ) has resigned makes me think he was possibly looking to resign anyway. And that makes me think his free money was not sufficient to make up for the good possibility that he will die earlier because of the stress of being CEO at a company that he may not see doing all that well in the short to medium term, and possibly long term. So he got stressed at an interview I believe by one of those Ch7 or ABC old dolls who give CEOs a hard time. And good on the old dolls. It may not have been an old doll. Maybe a chick. who knows but it doesn't matter. That is their job. The chicks. His job is to stick at a job that should pay enormous amounts of free money and he can laugh like the leprechaun did at he monkeys who paid him free money

So that is why I'm now following WOW. Will it fall in price? Who knows. I hope it does. How far will it fall. Who knows. I hope it falls greatly and quickly. That would be good for me. When to buy? Keep on following people on ASF who don't buy chandlery and vessels at BCF. @divs4ever seems to buy cheap. I'm not good at buying at the bottom, but I am ok at not buying at the top. And I'm looking at buying. But not right now. Then again I could be wrong. Disclosure : I don't own a boat and don't want to own a boat.

gg

with WOW i inherited a fair chunk of WOW shares that a family member had owned and DRPed them for decades ( not years ) in 2011

i now hold a less than 10% of that inheritance ,

i started losing patience when the grumpy old CEO who promised 5% annual growth ( and missed by a whisker ) left , now the instos might love the direction WOW is going ( Dick Smith Electronics , Master's Hardware , etc etc etc ) but i have been reducing and reducing , in fact i hold 3 times more WES now ( at full cash risk )

the departing CEO had been with WOW for years , mainly earning acclaim for managing the Drinks arm ( now listed as EDV )

maybe the internal politics finally got to him

but WOW was making dubious choices before Brad ( was CEO ) will those dubious decisions continue after he steps down

 

[Dona Ferentes]

there is a school of thought, when it comes to investing, that you should never buy anything that has a P/E ratio over 10. It's simplistic, for several reasons , and not many stocks trade at such a low multiple. The static average across the market is, I believe, around 15-16. Also, it is a lagging indicator.

Now with WOW, it was trading at a ratio above 30 and I see it has slipped to around 24. At 30, you have to ask yourself, will the E side lift to be double quickly such that, if bought at that 30 level, it will be okay and I make my money on price appreciation?

There are several factors that do bring earnings growth to this company, but perhaps only incrementally, perhaps 10 per cent a year. Maybe higher, maybe lower. There are also constraints (competition, max'ed out footprint, mgmt folly, etc), so even an elevated 24 PE may wobble.

 

[Powerup]

Great general advice! Thank you to all who took the time to respond, much appreciated, you have made my day

WOW is on my watchlist, it was tempting for me to press the buy button (my finger was getting itchy) on WOW dropping past $33 today. The latest ABC 4 corners story is not good, not sure if the news stories and Gov Albo messages will get much better soon either.

It does sound like a conspiracy, the news and Gov Albo threats may not be finished with WOW anytime soon, so it may have some ways to drop further, - I’ll wait for $25 a share, might be wishful thinking, not that I know what I’m talking about tho. – I’ll keep watching and do some more research.

 

[divs4ever]

Great general advice! Thank you to all who took the time to respond, much appreciated, you have made my day

WOW is on my watchlist, it was tempting for me to press the buy button (my finger was getting itchy) on WOW dropping past $33 today. The latest ABC 4 corners story is not good, not sure if the news stories and Gov Albo messages will get much better soon either.

It does sound like a conspiracy, the news and Gov Albo threats may not be finished with WOW anytime soon, so it may have some ways to drop further, - I’ll wait for $25 a share, might be wishful thinking, not that I know what I’m talking about tho. – I’ll keep watching and do some more research.

COL/WOW often become punching bags by governments feeling the consequences of rising inflation ( near a future election )

food prices lag other cost rises but ripple , fuel rises , wage rises , ie go up several times in reply to increase purchase price bumps

watch more carefully how WOW ( and COL ) management negotiate these challenges ( often they squeeze suppliers harder , and trim down staff )

 

[mullokintyre]

Wow still in the doldrums.
Not helping me maintain a spot near the top in the yearly tipping comp.
Maybe its the threat of inquiries by the feds into the grocery duopoly.
Maybe Dutton's call for a Wooly Boycott had some traction after all.
Mick

 

[Chipp]

I like WOW here actually bought some this week but i will stress it isnt an investment , with a holding period of weeks/months not years . Historically buying WOW at 2-4 year lows is not the worst , of course the Masters debacle produced near 10 year lows with massive writedowns , but are we in that environment now ? Time will tell . DYOR

 

[divs4ever]

Cops catch Woolworths truck in dangerous stunt on busy road​

Cops catch Woolworths truck in dangerous stunt on busy road

The reckless stunt caught the attention of nearby police. Watch the shocking video.

au.yahoo.com

don't forget to watch the second video clip as well

i hold WOW ( 'free-carried' ) ( sold 90% of an inherited holding )

way too expensive for me to consider adding

but these snippets of further negative press might reveal an entry opportunity for a member or two

 

[divs4ever]

Woolworths shopper scores freebie after checkout error: ‘Check your dockets’​

Woolworths shopper scores freebie after checkout error: ‘Check your dockets’

The Perth shopper was able to score a free grocery item, thanks to this little-known policy.

au.yahoo.com

 

[mullokintyre]

Although I have WOW in the yearly comp, I have my real money in MTS.
For that I am grateful, as MTS up about the same level as WOW is down.
But for all the negative publicity, I am surprised it has not gone down further.
Mick

 

[debtfree]

Although I have WOW in the yearly comp, I have my real money in MTS.
For that I am grateful, as MTS up about the same level as WOW is down.
But for all the negative publicity, I am surprised it has not gone down further.
Mick

Quick chart of WOW from 16th Oct 23 and also the price comparison to MTS since then.

 

[qldfrog]

Company Announcements

Company announcement as released to the ASX

www.fool.com.au

Good I think as I just entered a small position.
Not keen on the brand but part of move toward conservative shares and cash

 

[divs4ever]

Although I have WOW in the yearly comp, I have my real money in MTS.
For that I am grateful, as MTS up about the same level as WOW is down.
But for all the negative publicity, I am surprised it has not gone down further.
Mick

i have the reverse position

shares in WOW but dumped the MTS a couple of years back

although to be fair i sold the inherited holding , what i hold now is part of the DRP shares accumulated over the last 11 years

it looks like i am going to regret the MTS exit , but not the WOW sell-down

but time will tell

good luck

 

[divs4ever]

Company Announcements

Company announcement as released to the ASX

www.fool.com.au

Good I think as I just entered a small position.
Not keen on the brand but part of move toward conservative shares and cash

i exited EDV completely January this year

i worked for WOW back in 1972 , and it was a three-ring circus back then and has now descended into a seven-ring circus ( even after the hardware debacle ) will it shed Big W next ?