WHS - Warehouse Group

[Balance]

i see morningstar are recommending buying WHS ... does anyone pay attention to these recommendations? or are they just automatically generated based on the current price vs their calculated value? anyone thinking they should just sell WHS now and cut losses? how much lower is this rollercoaster going

Don't waste your time with Morningstar. They still have WHS's NPAT for F17 at $68m!

[bottomfeeder]

Newsflash "Amazon makes takeover bid for the Warehouse to secure warehousing and infrasructure base in New Zealand, and proposes expansion into Australia to merge with their existing operations"

COULD BE TRUE?

[BlackPeter]

Newsflash "Amazon makes takeover bid for the Warehouse to secure warehousing and infrasructure base in New Zealand, and proposes expansion into Australia to merge with their existing operations"

COULD BE TRUE?

Not a good fit. Warehouse owns or leasees a huge amount of expensive retail space (and parking space) in shopping malls to facilitate customers (in the flesh) coming through their doors.

Amazon however would only need storage capacity with good truck access but without the need to cater for foot (or vehicle traffic) from customers. They would look for large buildings in industrial parks, not in shopping malls.

Warehouse would need a suitor with very deep pockets in the brick and mortar retail industry. Something like a big foreign discounter trying to break into the comfortable NZ supermarket duopoly like e.g. Aldi. Wouldn't hold my breath though, and doubt that any single suitor would be interested in the whole lot (including Blue sheds, Noel Leeming, ...).

[Beagle]

Newsflash "Amazon makes takeover bid for the Warehouse to secure warehousing and infrasructure base in New Zealand, and proposes expansion into Australia to merge with their existing operations"

COULD BE TRUE?

Its school holidays...no further comment.

Speaking of no comment, welcome to the forum. I agree 100% with what Balance has said above. Read back through the last ~ 10 pages of this thread. Therein you'll see what a number of us think might be fair value.

[bottomfeeder]

WHS has lost nearly a third of its market capitalisation over last six weeks or so. 350 mill is quite a bit. Must have been oversold. Mentioning Amazon was a bit facetious. But I would expect that any interested parties looking at WHS must see the current shareprice as being attractive.

[Leftfield]

Newsflash "Amazon makes takeover bid for the Warehouse to secure warehousing and infrasructure base in New Zealand, and proposes expansion into Australia to merge with their existing operations"

COULD BE TRUE?

Fake news until you can post some evidence IMHO.

[Balance]

Not a good fit. Warehouse owns or leasees a huge amount of expensive retail space (and parking space) in shopping malls to facilitate customers (in the flesh) coming through their doors.

Amazon however would only need storage capacity with good truck access but without the need to cater for foot (or vehicle traffic) from customers. They would look for large buildings in industrial parks, not in shopping malls.

Warehouse would need a suitor with very deep pockets in the brick and mortar retail industry. Something like a big foreign discounter trying to break into the comfortable NZ supermarket duopoly like e.g. Aldi. Wouldn't hold my breath though, and doubt that any single suitor would be interested in the whole lot (including Blue sheds, Noel Leeming, ...).

Amazon business model could not be more different from the Warehouse!

[nocomment]

thanks roger. yeh i see morningstar has been wildly wrong in the past - like any share tips i guess they have to be regarded with a fair amount of skepticism - or maybe its used to manipulate the mum & dad investors? who knows.

[Ogg]

http://money.cnn.com/2017/04/22/news...ail/index.html

Brokerage firm Credit Suisse said in a research report released earlier this month that it's possible more than 8,600 brick-and-mortar stores will close their doors in 2017.

[Beagle]

thanks roger. yeh i see morningstar has been wildly wrong in the past - like any share tips i guess they have to be regarded with a fair amount of skepticism - or maybe its used to manipulate the mum & dad investors? who knows.

You're welcome. Moaningstar as some of us like to refer too them has a bit of a reputation for all the wrong reasons.
One of their most infamous calls was to consistently hold a negative rating for many years on RYM when they more than quadrupled in price when almost all other analysts had a more positive / balanced view. I believe most of their analysts are based offshore so they're probably at a natural disadvantage to local analysts anyway.
I find doing the opposite of what Moaningstar recommends more often that not is a winning strategy I can't help wonder if they currently have a buy / accumulate recommendation on RYM after getting it wrong for so long.