WHS - Warehouse Group

[winner69]

Not sure why WHS don't just turn a portion of their stores into a costco/gilmores type operation.

Buy 5kg of milo cheap
Buy 50kg washing powder cheap
Buy 2kg corn flakes cheap.

Don't worry about perishables or short life goods. Who wants to buy their milk and broccoli from the WHS? Not me but I would buy 5kg of baked beans in a tin.

There’s a Uncle Bills next door to a Red Shed in Lyall Bay

Got pack of 40 bags Twining Tea for $3.98 the other day

Countdown price 20 bags for $6.70

So rawz your model works ……without the cost of having everything

[winner69]

Love these government ‘inspired’ enquiries

Like we are not being fleeced at the petrol pumps by the likes of Z any more

[winner69]

Interesting thought I came across today - Competitive forces are also absent in our democracy. Effectively because of the 5% threshold for MMP we have little more than a monopoly.

Better have an enquiry I reckon

[BlackPeter]

Interesting thought I came across today - Competitive forces are also absent in our democracy. Effectively because of the 5% threshold for MMP we have little more than a monopoly.

Better have an enquiry I reckon

Hmm - not sure - I do see at least a duopoly. I think the problem with politics here is not lack of competition, but lack of relevant abilities, a lack of delivery of whatever was promised : combined with a lack of transparency and a strong ineptitude to select decent candidates.

However - I must admit - I can think about many other countries where the lack of these attributes is ways worse than here in NZ :

[winner69]

Only a Comcom ‘expert’ could suggest direct government sponsorship of entry into the market

What a weird world it is these days

[LaserEyeKiwi]

Only a Comcom ‘expert’ could suggest direct government sponsorship of entry into the market

What a weird world it is these days

That’s just one option. The more obvious immediate moves are things such as implementing a code of conduct (like they have in Australia and UK). At present the duopoly threatens suppliers with banishment from their shelves, or harsh cutbacks, if they dare to contemplate a serious effort to supply a new entrant. That is out an out abuse of market power and definitely warrants government action. The duopoly players did this to themselves, even while KNOWING that the com com was investigating the market they were stupid enough to continue doing it.

The exact same thing is happening in the building supplies industry - but from the opposite end. Building supplies are also a duopoly, but this time from suppliers, and hardware retailers & house builders are threatened with negative consequences if they seek a new third supplier either locally or internationally.

[winner69]

It’s a bugger WHS share price hasn’t really moved for a few weeks

The so called ‘overhang’ from Foodstuffs sell down must be gone by now?

Hope market not believing the story this year is a one off and things will revert to more normal levels of profit next year and beyond.

[oldtech]

It’s a bugger WHS share price hasn’t really moved for a few weeks

I don't mind ... gives me a chance to save my pennies and buy a few more

[Beagle]

It’s a bugger WHS share price hasn’t really moved for a few weeks

The so called ‘overhang’ from Foodstuffs sell down must be gone by now?

Hope market not believing the story this year is a one off and things will revert to more normal levels of profit next year and beyond.

Just expanding on this a bit and you already know my view about the demand push being a multi year thing but the key point to me is that if this one off tailwind was indeed just a one -off then you could make the same argument for almost all the retailers so Briscoes on a PE of 17 and WHS on a PE of 6.6 becomes a bit of a no brainer decision especially given Rod Duke already has his business running like a well oiled Swiss watch and there's plenty of efficiencies to come from WHS's enhancement program.

Disc: Bought even more yesterday.

[winner69]

Just expanding on this a bit and you already know my view about the demand push being a multi year thing but the key point to me is that if this one off tailwind was indeed just a one -off then you could make the same argument for almost all the retailers so Briscoes on a PE of 17 and WHS on a PE of 6.6 becomes a bit of a no brainer decision especially given Rod Duke already has his business running like a well oiled Swiss watch and there's plenty of efficiencies to come from WHS's enhancement program.

Disc: Bought even more yesterday.

OMG …..WHS share price at PE of 17 is close to $9.00