db76 Posted February 13, 2009 Share Posted February 13, 2009 the answer in part maybe that CBA has become a substantial holder with 5.08% ( Up from 4.22%) Link to comment Share on other sites More sharing options...
db76 Posted February 16, 2009 Share Posted February 16, 2009 HY results out Resources contributed 39% of Group EBIT up $574M from pcp Reversion to below the trend for coal prices will see that removed At least they used that windfall to continue the Coles turnaround spendng over $200M with much more to come in 2H Coles Transformation still in the years 1-2 with 3yrs to run --- but cash flow to fund capex is drying up Proforma debt down from $9.7Bn to $6.8Bn , proforma net debt to equity reduced to 29% Management is still diverted - 9 divisions - (Home Improvement & Office supplies, Coles, Target. Kmart) = 63.5% of EBIT Yet they still seem to think that they are the "old" Wesfarmers and the Coles Group was just a medium sized conglomerate "bolt on" retail offer closes 23/2/09 - how much will small holders put up ? Link to comment Share on other sites More sharing options...
Idyll128 Posted February 16, 2009 Share Posted February 16, 2009 db76 What do you mean by: "Management is still diverted - 9 divisions - (Home Improvement & Office supplies, Coles, Target. Kmart) = 63.5% of EBIT Yet they still seem to think that they are the "old" Wesfarmers and the Coles Group was just a medium sized conglomerate "bolt on"" Are you inferring that management are not diverting enough attention to the Coles aquisition? If this is the case I suggest you stop commenting on WES until you start keeping up with what's really going on. You can start be researching Keith Gordon's appointment specifically made to free up more time for Richard Goyder to focus on turning around Coles. You may then check out the salary package of the new Coles CEO in respect to Richard Goyders package to see how serious they are about getting the right people in the right positions to manage their turnaround strategy. The other thing you might look at is the current shareprice relative to the retail capital raising price to see if the market agrees with your analysis. Link to comment Share on other sites More sharing options...
db76 Posted February 16, 2009 Share Posted February 16, 2009 the fact is that Wesfarmers is now virtually the Coles Group + Bunnings you cant argue with the fact that it is now 63.5% of EBIT the other divisions in WES are practically irrelevant as Resources will be once lower Coal prices are reflected so if you own WES from long ago you dont really own a conglomerate any more - you own a retail group I will continue to comment as long as I have an interest in WES I agree the share price is reflecting a positive perception but as I said in previous posts when a capital raising is on, the share price often trends back to the offer level $13.50 whether it does this time we will see if you bought their last capital raising at $29 you may be a little apprehensive about this one When I want to see how WES Retail is going I go to the stores Thanks for the Keith Gordon lead - I will read up on it Link to comment Share on other sites More sharing options...
Idyll128 Posted February 16, 2009 Share Posted February 16, 2009 db76, My point was you seem to be saying WES management was not focussed on the turn around. I presented some evidence that they were. Case closed. Link to comment Share on other sites More sharing options...
wolverine Posted February 16, 2009 Share Posted February 16, 2009 from CitiSB 1H09 Result Preview: Cash Flow Strength To report on 16 February 2009 - We forecast 1H09e core NPAT of $1,006 million, growth of 67%. We forecast reported NPAT, after abnormals, of $866 million. There will be few surprises in the profit result following guidance given on 14 January 2009. We do not expect any asset impairment charge. Key issues - 1) Cash flow and capex: We forecast a 30% increase in operating cash flow. We estimate capex of $850 million, below the guidance run-rate given a lack of store refurbishments. 2) Is goodwill impaired? WES has conducted asset impairment testing. We expect no writedown of goodwill or any other intangibles. 3) Finance costs: The inferred interest rate for 1H09e could be greater than 10.5% given discount adjustments for provisions. No impairment - We do not expect a writedown of goodwill in 1H09e. The methodology used to assess fair value is based on long-term cash flow projections and a market-based cost of capital. Debt costs have fallen given lower base rates and long-run cash flow projections are likely to be unchanged. Rights issue still in focus - The retail component of the rights issue remains open until 23 February 2009. As a result, the final EPS dilution is still unknown. At our estimate of 25% retail take-up, the EPS dilution from the rights issue is 15%. At 100% take-up the dilution is 21%. Our view - WES share price will be increasingly driven by Coles. We expect the focus in the 1H09e result to be about the progress Coles is making in refurbishing stores, improving the fresh food offer and overhauling its supply chain. We expect noticeable signs of progress on these fronts in 2009. Link to comment Share on other sites More sharing options...
db76 Posted March 5, 2009 Share Posted March 5, 2009 WES has got a reprieve - ASIC extended short selling ban on financial securities until 31/3/09 (due to finish 6/3/09) always good to have a financial group in your conglomerate Link to comment Share on other sites More sharing options...
db76 Posted March 6, 2009 Share Posted March 6, 2009 WES retail offer 60% supported - good result share price holding up better than I expected - hope it can now consolidate Link to comment Share on other sites More sharing options...
moosey Posted March 18, 2009 Share Posted March 18, 2009 The Dividend Investment Share Plan allocation is at $17.3667 thats a healthy 8% on todays share price! nice little earner, even if the SP has been depressed lately! Link to comment Share on other sites More sharing options...
db76 Posted April 2, 2009 Share Posted April 2, 2009 WES still doing well ASIC Short selling ban is extended until 31/5/09 (not as per my post below) a little insurance division is very useful Link to comment Share on other sites More sharing options...
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