WOW - Woolworths Group

[swm79]

I am not sure whether everybody is itching for cheap hardware stores, but I guess it fills out their offering.

one of the only available retail areas left that WOW and WES dont cover.

also Costco sells hardware.... i knwo they're only small bikkies yet, having only one store.... but if they take off (and i for one hope they do!!!!!) they'll be competing with WOW head on now.

WOW must have thought competition in that area was imminent - need to establish the brand and get the change over running smooth and on track before they're put under pressure

 

[oldblue]

The Danks takeover is just to get a foot in the door and an established hardware name. The real money gets spent over the next several years as the JV with Lowes, second biggest hardware retailer in the US, rolls out its new operation.

 

[Muschu]

Anyone else out there getting bored with the SP performance of WOW these past 6months?
I know there's little reason to complain about a 16% rise, and WOW has proven exceptionally resilient. However when the XAO has gone up more than double that amount in the same period I suspect it is a fair question to ask whether the investment is better placed elsewhere...

 

[oldblue]

Well, I don't hold WOW but have spent the last x years kicking myself for that and waiting for a decent dip to buy some.

I'd have been more than happy to tolerate some of that "boredom".

 

[Julia]

Anyone else out there getting bored with the SP performance of WOW these past 6months?
I know there's little reason to complain about a 16% rise, and WOW has proven exceptionally resilient. However when the XAO has gone up more than double that amount in the same period I suspect it is a fair question to ask whether the investment is better placed elsewhere...

Rick, WOW didn't fall with the same vehemence as most other stocks in the first place, so fairly naturally it's not going to have to rise as much to make up the lost ground.

If you have a look at a two year chart, WOW from peak in Nov 07 to trough around July 08, the SP dropped around 20%, whereas many other companies experienced 50% or more.

WOW is imo your archetypal defensive stock. You'll never get the exponential large rises you'll find with e.g. a miner, but neither will you lie sleepless at night during a downturn.

Simply depends on what you're looking for.

 

[Muschu]

Thans Julia. I realise what you are saying.
I exited WOW ages ago - as I did all other stocks bar 1.
I began to re-enter the market from March and included WOW at that time. Virtually all of my other stocks have exceeded the March-September index by a significant margin. WOW is way under the index for that period.
Yes, it's defensive. Maybe I have become a bit more "aggressive" in my investments than I was.
I'm not complaining and still remain watchful.
Best wishes

Rick

 

[ROE]

Anyone else out there getting bored with the SP performance of WOW these past 6months?
I know there's little reason to complain about a 16% rise, and WOW has proven exceptionally resilient. However when the XAO has gone up more than double that amount in the same period I suspect it is a fair question to ask whether the investment is better placed elsewhere...

WOW is a good company no doubt but it price for perfection

I prefer good company price at a discount

Uncle Graham once told me a good company price at a discount, the down side is low but the upside is high...everyone know the margin of safety few practice them

Going the other way has the reversal effect
A bad earning year for WOW will see it price pop and the hardware venture dont work out
as planned more pop

 

[Fool]

If I am in the Dividend Reinvestment Plan for 9 October 2009, when do I get my new shares?

should be today no?

 

[RamonR]

They should be credited today.
Mine have shown up in etrade today.

Previous reply was removed for some reason

 

[Julia]

Apparently WOW has made an international 'best of' list:

http://www.businessspectator.com.au/bs.nsf/Article/BCG-pd20091026-X78L5?OpenDocument&src=kgb

I'd been intending to buy back into WOW but the performance of the SP over recent months has been less than great. Looks as though WES (with Coles finally showing some real growth) might perhaps be the better alternative.

 

[Kremmen]

There's a "members' statement" from some shareholders included with the notice of AGM, basically saying that pokies are evil and Woolies shouldn't be involved with them.

Pokies are, of course, extremely profitable. I wonder why the little group of WOW shareholders who don't like them don't just sell their shares and move on if they don't like it? (Their rantings won't have any effect except to waste time and resources anyhow.)


[Disclosure: I'm both a WOW and CWN shareholder, so clearly I want the best result for my investment and am not averse to profiting from gambling.]

 

[oldblue]

Apparently WOW has made an international 'best of' list:


I'd been intending to buy back into WOW but the performance of the SP over recent months has been less than great. Looks as though WES (with Coles finally showing some real growth) might perhaps be the better alternative.

Yes, the short term technicals are a bit of a mess but that only moves WOW further up my watchlist!

Certainly not the time to buy but it's getting more attractive as time goes by.

 

[Tukker]

Gradual sell off in WOW for the last 4 months, when the rest of the market was enjoying significant recovery. Now closing in on lvls seen only a few weeks since 2008. I could argue that WOW is nearing a price floor around $24 (+/-10%) and barring any significant fundamental news, should be one of the first to rebound in the short term.

Bit of spooked behavior going on atm in the market in general. Personally im gonna play wait and see until a new trend is formed. I don't Hold.

Anyone else to comment? Nothing posted here since November

 

[satanoperca]

Both WOW and WES have both had significant retraction of their share prices over the last few months. Wonderful for shorters, not so good for long term holders.

I see further weakness in their share prices due to the trade war between the two for market share that has recently erupted over Australia wide uniform pricing.

Cheers

 

[wns]

Very good HY result announced by Woolies today, which the market liked. I bought into them about two weeks ago.

 

[Dracuu]

I trade using about 95% technicals so I cannot comment on the fundamentals but from a technical viewpoint I believe that WOW appears technically overbought on a retracement within its major down trend. I expect a continuation of its medium term trend down to the $25.50 level.

This is a trade I will place tomorrow (CFD's) -

WOW – Trade Going Short

Entry range $26.80 - $26.90

Stop loss $27.10

Profit target $25.50

Time period is short to medium term as I expect this profit to be reached in 2 - 4 weeks.

 

[nulla nulla]

Interesting perspective, wow ready for a short to $25.50 as a continuation of a downtrend.
I was re-reading "Guppy - Chart Trading" again over the weekend. He makes the point that the movement of the share price is driven by the amatuers (at open) and the professionals (at close) reflecting the different value assessments placed by the two groups and the different levels of emotion bought into the value determination.
The downward dip at close might be interpreted to mean that the professionals considered the share was overbought on the news and the close was a good time to lock in profits or get set with a short for the retrace.
This would support your perspective. However, I'm not sure that the share wasn't oversold recently in the first place. I feel that the share could now trade up to $28.50+ (in the near term) on the strength of the report, combined with wow being a slightly defensive share in these times of uncertainty.
Of course I could be wrong and everyone should do their own research.

 

[ROE]

WOW fundamentally = Great
Management = Great
Everything else = Good
Price = Haven't offer me the margin of safety I want
so keep waiting, could be a long wait, patient is a virtue

 

[wns]

WOW fundamentally = Great
Management = Great
Everything else = Good
Price = Haven't offer me the margin of safety I want
so keep waiting, could be a long wait, patient is a virtue

Hi ROE, what calculation(s) / method(s) are you using to get an estimate of value?

I'm hoping the SP goes down again so I can pick up more.

 

[Mofra]

Both WOW and WES have both had significant retraction of their share prices over the last few months. Wonderful for shorters, not so good for long term holders.

I see further weakness in their share prices due to the trade war between the two for market share that has recently erupted over Australia wide uniform pricing.

Consumer staples are regarded as a defensive sector due to the increase of people buying groceries in poorer econimic climates as people are less likely to eat out. Any retrace could be symptomatic of the market starting to believe in favourable times ahead.

Disc: I hold both in my LT portfoilio.