WHS - Warehouse Group

[bottomfeeder]

Its a competitve market in Australia and New Zealand already. Amazon just cant ship from Australia, on all items especially on those under a $100, or bulky items, and remain competitive with NZ suppliers all times. Just unrealistic. Ebay has been in NZ for quite a few years now but Trademe keep going strong. The Warehouse, not only has its red sheds but it also has Stationery, Noel Leemings, Torpedo 7, Pet.co, a fitness online seller, etc. The redsheds are contributing less and less to the overall turnover. Their online sales and one day deals are going from strength to strength. The fact that they own less and less of their retail shops, can only mean that they are ready to change their format in the future. When I buy from the warehouse I am secure in the knowledge that they stand behind their guarantee, and sale. You can scaremonger all you like, but I think the impact will be felt more by those independant shops who already are feeling the pinch quite markedly, and their premises will be turned into a cafe or restaurant. (So many of those around now)

No doubt there will always be an impact from another player in the market, and that is always the way and always has been. When there is money to be made another player will enter the market.

I have been buying from Ali Express and E bay for so many years now, but I also still buy from the warehouse. Sometimes you just cant wait a moth for the item and also while its cheap from china, it is sometimes (and not always) cheap and crap. To get what you want online from china sometimes you have to spend more to get exactly what you want. So many features and varieties of stuff around. As an example, I bought a IP camera on one day deals "warehouse" for $40, and it worked first time installed first time, I then bought a similar one from China for $25 including postage. The instructions were crap, it wouldnt connect, just rubbish. That was money down the drain, they said I could get my money back as long as I posted it back to China. They of course would not reimburse my postage costs, and it had to go tracked. I bought another on trade me for $40. Similar story, just crap, couldnt get my money back. I had to consider just where there was value for money. So I dont think that the Warehouse is not going to go broke anytime soon.

But saying that, growth over the next five years may be limited, so they need to become more efficient, cut costs, and work on their marketing and profitibility. I think that is what they are doing.

[artemis]

Its a competitve market in Australia and New Zealand already. Amazon just cant ship from Australia, on all items especially on those under a $100, or bulky items, and remain competitive with NZ suppliers all times. Just unrealistic....

Maybe, maybe not. I buy a bunch of stuff online from the Warehouse / Warehouse Stationery 3 or 4 times a year. Suits me as I don't drive. Maybe $100-$150 a time and it usually arrives in several different packages and from different distribution centres- like 6 packages for 10 items. At $6 for the whole order, they can't be making any money on shipping, even with a bulk courier arrangement. Even from Australia, Amazon might be able to match that.

[bull....]

WAREHOUSE categories will be destroyed, they will be left with big half empty stores there is no way they will be able to compete against amazon - they do not have the buying power of amazon.

AMAZON HAVE STATED THEY WILL DESTROY YOU and anyone else that gets in the road.

See amazon are distancing themselves from the above comment know and are now saying you should learn from us, employ executives from amazon who are better than you as they know our company and will be better able to manage your business when we come to town lol.

[bottomfeeder]

WHS will not go broke imo but underlying profits will decline year on year for at least the next decade.

No compelling reason to invest in the stock.

Except that the price was low and now it has increased, and has quite a large buying support.


There are always scaremongers who take concerns to the extreme. Years ago I knew of a BP service station who got news that a Challenge service station was going to open up just down the road on a busy out of city highway. They got into a panic and started looking to buy a site even further down to move. Someone suggested that you just cant buy land and set up a service station each time someone new opens up down the road further. Advice was that sales will suffer a bit, You need to get more efficient and market your business better and no doubt the service stations down further from both the BP and Challenge will suffer more. This was the true result and the Challenge station closed down a few years later. The BP is still there pumping. The answer to the Warehouse/Amazon future is don't panic, work on your marketing/loyalty cards/efficiency and work to maintain marketshare and markup at the expense of other less prepared retailers.

[bottomfeeder]

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.

Haughty comment as you dont know who I am, how much I have invested in the WHS and what my average entry price is. It may appear when you made this reply a number of you were wrong as to where the shareprice was heading. Then again who knows where the SP will be next month.

[BlackPeter]

Except that the price was low and now it has increased, and has quite a large buying support.


There are always scaremongers who take concerns to the extreme.
...

There are ... however it feels still a bit early to open the bubbly - the share is still in a beautiful downtrend with no buying indicator I can see on green. Not even the volume of the light ripple so far is convincing.

Having said that ... given that I see it at this stage as unlikely them doing a PPL right now, the tide needs to turn at some stage. Not sure though whether this is now, but maybe you know more?

[BIRMANBOY]

Ask him in 6 months he'll have a better perspective then. Although if you look at his name maybe he specializes in picking, feeding or examining bottoms......I can sincerely say I would dearly love to be of guru status in that department.

There are ... however it feels still a bit early to open the bubbly - the share is still in a beautiful downtrend with no buying indicator I can see on green. Not even the volume of the light ripple so far is convincing.

Having said that ... given that I see it at this stage as unlikely them doing a PPL right now, the tide needs to turn at some stage. Not sure though whether this is now, but maybe you know more?

[Balance]

There are ... however it feels still a bit early to open the bubbly - the share is still in a beautiful downtrend with no buying indicator I can see on green. Not even the volume of the light ripple so far is convincing.

Having said that ... given that I see it at this stage as unlikely them doing a PPL right now, the tide needs to turn at some stage. Not sure though whether this is now, but maybe you know more?

Yup - can remember punters thinking WHS had bottomed out at $2.70 almost exactly a year ago after the sp recovered - went to a high of $3.15 in Dec 2016 before the precipitous plunge to the low of $2.09 in recent times.

So up 16.7% and then, down 34% - typical of a down trending stock.

Trading is one thing, investing in a down trending stock - from $8.00 to $6.00 to $4.00 to $2.00 - strictly for either the brave or the foolish!

[bottomfeeder]

I was about to outline my strategy, but it sounded like "pride goeth before destruction". However that said, catching a falling knife does work with some companies. Also not all of mine were bought at $2.12, which were sold yesterday. Low margin, high turnover, and also goes with higher risk. But it takes some decision making not to blindly buy at an unsustainable price. Doesnt work all of the time. WYN was a killer, even at 42 cents. Lucky for me I was a bit cautious about software companies and only dipped my toe in the water.

[Balance]

https://www.businessinsider.com.au/w...hopping-2017-5

One person's view.