Whoolworth buying WHS

[steebe]

Is it WW starting to buy WHS again. Anyone heard anything?

[POSSUM THE CAT]

Steebe what would be the point unless they can Buy Foodstuffs blocking stake first

[tim23]

Theres no price action - not sure what you mean Steebe?

[BIRMANBOY]

Looking at the chart looks in a downward turn not upward?

[MANDRAKE]

Looking at the chart looks in a downward turn not upward?

Although it does look like there has been something of a falling wedge reversal playing out since Oct/Nov last year. I would be interested if anyone else interprets the price action that way..

[BIRMANBOY]

I dont know what a falling wedge reversal is....but it sure looks like a drop down to 3.20 or so could be on the cards if you look at the 2 year chart. Seems to have a trading range high and low point of 3.20 to 3.70 plus or minus. It has a great dividend however so I am looking for somewhere to get in.
Although it does look like there has been something of a falling wedge reversal playing out since Oct/Nov last year. I would be interested if anyone else interprets the price action that way..

[BIRMANBOY]

So you look to add to your position at about 3.40 and whats your exit? sorry didnt quite understand "the 2 month cycle" or "pyramid building time?" (assuming you are not of Egyptian heritage). Also it sounds like you are trading to get profits from the buys and sells rather than holding for dividends..correct? I am trying to use a hybrid system where I can have my cake (the dividend) and eat it too by buying at a low spot in the cycle (hopefully)!!
If economic cycle are to be believed ... (I'd remind people of the gem of a phase: those who don't study history are doomed to repeat it) ... WHS could suffer the same fate as PPL and other retailers who just aren't benefiting from the "recovery" nearly as fast as many thought. Falling shareprices in this sector are more about investor's patience wearing out rather than long term fundimentals. Short positions taken up at the support level (currently 340 odd?) mark entries and short stops around the 2 month cycle are exits until a solid long term trend emerges is basically what I'm doing but I'm nervous of profit guidance that will freak out the market. If this happens, and irrective of whether I'm holding at that point, it'll be pyrimid building time.

[tim23]

The yield looks solid even on flat performance.

[Mr D C]

From todays Herald - Woolworths shopping for bigger stake

www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10734372

[BIRMANBOY]

From the Sat Dominion Post...a liitle more cautious reporting

Grant O'Brien, chief executive designate of Australian retail group Woolworths, says the company is interested in growing its stake in The Warehouse, but it is not moving yet. "It takes two to tango. We'll remain patient. It's a terrific business and a business we've admired for a long time."
Mr O'Brien yesterday addressed the food and grocery industry in Auckland, broaching many subjects including the $1 billion plus it has injected into Progressive Enterprises and its Foodtown, Countdown and Woolworths stores since taking over in 2005.
There was also commitment to continue to invest in New Zealand, reflecting on the company surpassing the investment target set when Woolworths bought the business.
"It will continue with new stores, new jobs," he said.
Food & Grocery Council chief executive Katherine Rich said O'Brien is set to become one of the most influential executives in the Australian food industry.



[B]- The Dominion Post