WHS - Warehouse Group

[MauroNZ]

I agree with Beagle. WHS is never going to be a growth company - there's so much transformation required and intense competition I just can't see it happening. They have a lot on their plate. Now that's not to say I don't see them paying sound dividends and lasting around, but the chances of the share price going up to anywhere near where it used to be in my opinion is very low.

Briscoes has an excellent track record (better than Hallensteins and definately WHS), however their growth seems to be slowing, especially with the housing market lagging. Personally I don't see Amazon as a big threat to them in the short term and at a PE of 12ish that would be the safest retail bet imo.

Hallensteins is a little more risky at the current SP but has a very strong record of being a brilliant dividend payer. They are performing extremely well at present and seem to have good growth opportunities in Australia. Currently its my largest capital position, but I think it's one I'll watch with a close eye over the next year.

Soooo imo you're better off in either companies than sticking around with WHS

DYOR

Thanks mate, I'm considering that or better get off retail. I also hold MHJ and that one has been more "stable".

[percy]

Thanks mate, I'm considering that or better get off retail. I also hold MHJ and that one has been more "stable".

Don't be in too big a hurry to sell your MHJ.

[MauroNZ]

Mauro I would get out. Dont buy any retail stocks ,to much challenge from online especially with no GST on items under $400. Get another broker /advisor.

You are right, however I also think if for instance need an iron or whatever that is small and not worth the wait and time to look online still some retail would be needed but probably not that big.

[MauroNZ]

Agree with getting out but not with don't buy any retail stocks, switch your WHS proceeds to HLG would be my advice.

Thanks, btw I follow your opinions of SUM as well.

I'm considering HLG but also switching to MEL as I also have MHJ so I guess enough retail with one .

[MauroNZ]

You're welcome. Really good idea as a newbie around here to go back to the start of the thread and read the whole thing to get the real flavor of the stock.
I don't want to make disparaging remarks about Craigs because more often than not they make good calls but like the rest of us they don't get every call right that's for sure !
Sometimes it makes more sense to simply cut your losses and look for something that's going to grow for you. All the best.

No worries mate, I prefer the blunt way rather "oh well mistakes happens".
Would you mind sharing your criteria for selling? Not trying to imitate but to think how much still I need to learn.

[MauroNZ]

Mauro, years ago when I was overseas and had some funds under management, Craigs put me into WHS at the height of their powers. Similar result and while I've tried to banish the memory, I think it was a circa 40-50% capital loss.

Overall, at the time under-performed the market. Like what the Beagle says, they have good and not-so-good selection, and also not trying to be disparaging.

I understand and thanks for the advice. Is also good to hear from another stories. I guess should wait for the full report and see from there. But also being the only one that bad is what made me hold it for that long.

[MauroNZ]

Don't be in too big a hurry to sell your MHJ.

Not at all, just saying that is the one I see more stable in the retail

BTW, I've read two of the books you recommended here "Aim, fire ready" and "The Zulu Principle".

[percy]

Not at all, just saying that is the one I see more stable in the retail

BTW, I've read two of the books you recommended here "Aim, fire ready" and "The Zulu Principle".

Just keep putting into practice what you read in "The Zulu Principle."
It really works.!!

[winner69]

Just as well WHS not an Aussie company or covered by Aussie brokers/analysts

Warehouse problems mirror those of Myer to some extent in trying to become a 'modern day' retailer.

After the latest profit warning saw Credit Suisse analyst Grant Saligari slash his price target for the stock from 56¢ to 20¢, and say things like "With Myer reporting a deteriorating sales trend and a precipitous profit decline, there appears to be little value for existing shareholders,"

OUCH

Is our Nick heading the same way?

[JeremyALD]

Just as well WHS not an Aussie company or covered by Aussie brokers/analysts

Warehouse problems mirror those of Myer to some extent in trying to become a 'modern day' retailer.

After the latest profit warning saw Credit Suisse analyst Grant Saligari slash his price target for the stock from 56¢ to 20¢, and say things like "With Myer reporting a deteriorating sales trend and a precipitous profit decline, there appears to be little value for existing shareholders,"

OUCH

Is our Nick heading the same way?

When it comes to messes, there arent many able to compete with Myer. IPOd at $4.10 is now 55 cents. They have continually destroyed shareholder value and none of their businesses are performing. Have you read their announcement? It's as bleak as they come.

I'd say the WHS is a much better business, but that's not saying a lot