WOW - Woolworths

[cantab]

OK one eyed cantab. "Bring it on".

Someone famous once said something like that!

[h2so4]

If you are happy focussing on the past that's fine, but this game is all about the future.

[Huang Chung]

WWF (Woolworths, WesFarmers) SMACKdown!

[cantab]

Woolies really set the cat amongst the pigeons with their entry into the Hardware market, as a result Mitre 10 is on the block and could well be going the way of the supermarket wholesaler Metcash. As a long term Woolies shareholder I'm really excited about our CEO Michael 'Deck' Luscombe, in conjunction with our partner Lowes of the USA, bringing to the Aussie hardware consumer a great range of products at everyday low prices.

Being on a 2011 PE of around 15, which in my opinion only is pretty reasonable, I couldn't resist picking up a few more WOW on recent weakness.

[macduffy]

Good move on your part, cantab!

I've wanted to own WOW for years now but they've never been cheap enough for me. About time I sorted myself out and either buy on the next market dip or forget about them!

[COLIN]

Woolies really set the cat amongst the pigeons with their entry into the Hardware market, as a result Mitre 10 is on the block and could well be going the way of the supermarket wholesaler Metcash. As a long term Woolies shareholder I'm really excited about our CEO Michael 'Deck' Luscombe, in conjunction with our partner Lowes of the USA, bringing to the Aussie hardware consumer a great range of products at everyday low prices.

Being on a 2011 PE of around 15, which in my opinion only is pretty reasonable, I couldn't resist picking up a few more WOW on recent weakness.

After debating between WES and WOW, a few months ago, I finally decided to run with WES, and am glad to note that WES has since outrun WOW. Both are great outfits, in positions of super strength, and it may well be that WOW's entry into the hardware field will eventually puncture a bit of a hole in WES, but for the time being it seems to me that Bunnings will represent stiff and unflinching competition.

[h2so4]

Woolies really set the cat amongst the pigeons with their entry into the Hardware market, as a result Mitre 10 is on the block and could well be going the way of the supermarket wholesaler Metcash. As a long term Woolies shareholder I'm really excited about our CEO Michael 'Deck' Luscombe, in conjunction with our partner Lowes of the USA, bringing to the Aussie hardware consumer a great range of products at everyday low prices.

Being on a 2011 PE of around 15, which in my opinion only is pretty reasonable, I couldn't resist picking up a few more WOW on recent weakness.

Buy more when they are on sale....hmm.... makes sense.

Weekend Warriors and Tradies buying power tools from Woolies? Naa. Somehow that just doesn't sit right.

[cantab]

Good move on your part, cantab!

I've wanted to own WOW for years now but they've never been cheap enough for me. About time I sorted myself out and either buy on the next market dip or forget about them!

Macduffy, I've been in the same position and kicked myself for not buying WOW years ago when I first thought about it but they always seemed expensive. I've used the GFC as an opportunity to get a stake in WOW at what I think was a reasonable PE.

If you haven't already, take a look at p 177 of the online annual report which shows the dividend history and DRP price each 6 months since 1993. The consistency and trajectory of the dividend history is a sight to behold. That's what I'm buying. The hardware add-on is just a bonus.

[macduffy]

Yes, you're talking to the already-converted, cantab. Just a matter of getting myself organised - and selling something else!

[cantab]

Colin/h2so4, well done guys on your purchase of WES. Retail should do well for us all. Have to say as a Woolies shareholder I'm looking a bit green at the margins you guys make on home improvement - 11.2% EBIT margin on sales of $5.845m, WOW! and you've only got 18% of the market!