WOW - Woolworths

[voltage]

still expensive in relation to PE more competition?

[wns]

WOW is currently trading at a historically relatively low PE compared to the last 10 years.

Avge ann PE ratio (%) for June 2000 -> June 2009
16.6 19.8 24.0 21.1 17.5 19.1 19.2 21.9 22.2 17.6

Having said that, I don't use PE as a measure of value.

[ratkin]

How do you bargain hunters know that woolworths isnt being rerated longterm? It has always traded at a premium to similar market participants. Maybe with Aldi about , and dubious expansion into home improvement , the premium is no longer justified?

Still a very good stock , and im not trying to put people off , but i wouldnt be suprised to see a few years of going nowhere.
I have some myself , and have done very well out of them , and have no intention to sell. However not topping up either.

Metcash is my main Australian supermarket holding , trades on a lower P.E and the dividends are better

[macduffy]

WOW may well be in the process of being re-rated - mind you, all equity markets are at present! - which is why I'm holding off buying any at this stage.

I agree that Metcash is an attractive stock. More a wholesaler and distributor to independents rather than a supermarket operator, of course. They too may face a rather different future though when/if their takeover bid for Mitre10 goes ahead.

[Toulouse - Luzern]

WOW reported today for H1:
Group Sales +4.2% (reported earlier in Feb)
NPAT +11.4%
EPS +10%

[winner69]

Special note for ENP who on another thread said he was very keen on WOW .... (quote) I'm very very keen on purchasing Woolworths sometime this year or the next. I'm just trying to figure out how to buy low...

ENP .... buy now ... there never really is a low for WOW .... you obviously want to hold forever

Look at the 15 year chart
http://www.findata.co.nz/Markets/StockQuote/ASX/WOW.htm

WOW was overpriced when it was $2 .... WOW was overpriced when ot was $5 ... and i recal in the ealy to mid 2000's it was totally overpriced at $12 .... and no doubt it is overpriced now at $27/$28 .... but one day it will be $40 and then $50 and the $60 .... get the message ..... you are very very keen .... so buy now mate

[whatsup]

Bought in the early 90's for approx $ 2.00 a share and I think at their peak they paid $1.00 a share div PER YEAR, now thats a share, a 50% div yield!!!

have a look at this posting of mine on 1/12/09 re buying wow, its a great share but so imho is wes.

[macduffy]

It seems the gloss is fading from WOW with concerns about future growth prospects.

I still like the stock but holding off buying until the trend reverses.

http://www.sharecafe.com.au/article_...?a=AV&ai=17365

[winner69]

Reasonable sales growth but obviously times are still tough for Ausse/NZ retailers at the moment with WOW anoouncing profits won't be as much as first indicated. Maybe the lucky country is actually more stuffed than they think

So back to mid $26 mark and the range from $26-$30 which has been in place since mid 2008 continues

Hanging in there at the moment ... but one day WOW will be worth $40

Interesting to see that grocery sales appeared to be stronger in NZ than Aussie

[RRR]

Quote: Interesting to see that grocery sales appeared to be stronger in NZ than Aussie

Laziness or convenience for the consumer is to blame for their ever increasing profits in my view. Milk/dairy products/vegetables/fruits are way overpriced in all supermarkets. I never buy those stuff from them. I make a trip every week to the local dairy for the milk and the local vege shop for the vegetables and they are much cheaper and I am sure they are making profits!!

I envy the supermarkets-they always make money.