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WOW - WOOLWORTHS GROUP LIMITED


Meteor

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WOW has flogged off its sub-regional and neighbourhood portfolio as a property fund - code SCP -at $1.40 from Friday's bookbuild, and now trading $1.41-1.42

 

if you hold WOW, you will get 1 SCP for 5 existing WOW, with the opportunity to exit or top up.... (SCP coming in at $1.58 NTA and WOW price will drop 32c theoretically)

 

some positives - stable 7% yield , but some negatives; the most dire as per:

 

No great reason to hang on to Woolies property spin-off SCA Property by: John Durie from: The Australian November 22, 2012

 

THE best advice for Woolworths shareholders is to sell the retailer's property spin-off as soon as possible while the stock market is still infatuated with yield .

 

Today's annual meeting is expected to approve the creation of SCA Property comprised of some $1.4 billion worth of shopping centres the company hasn't been able to sell directly .

 

It is a smart play for Woolies CFO Tom Pocket because he is transferring value from the property trust to the headstock .

 

The only trouble is that, at least initially, both will have the same shareholders given SCA is being distributed in specie to Woolies investors

 

The first warning flag comes from the fact that the Woolies supermarkets will be housed in an entity with the new, unrelated name of SCA, which invites suspicion that Woolies does not wish the new company to be too closely associated with its creator.

 

Also, the deal is a related-party transaction between a $36 billion company and a $1billion-plus company and normally on those numbers the smaller one loses

 

Then there are highly restrictive lease terms including no rental increase for five years, which means while the property company is paying okay yields on day one the outlook isn't so flash.

 

There might be good reasons to hold the stock but they are not readily apparent.

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The 5 year consolidation zone has been broken with a solid push though the 30 resis area.

Uptrend continues & next stop should be testing the alt of 35.47.

It's a nice looking 10yr chart & looks promising for continuation upwards in the long term.

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slow and easy wins the game. They are MASTERS at what they do and they will keep up the good fight by their intution in moving forward and raising the bar to all that want a shot at trying to try and take market share away from them. They, WOW are long term for me and will accumulate them for some time to come. divvies are good so I will stay.

 

I Do not post very often but hope I will continue and will help someone to reach their goal.

I do not want to indulge in any of the crap that I have read in some of the articles I have read on this forum lately, the bickering, and insults are not rewarding and will drive people away from this site.

Stop whingeging and get on with investing what ever way u do.

I am very, very, happy with my lot ie. LIFE (it is not forever) and that includes Investing so make sure you get a life.

 

Wee Al :rolleyes:

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WITH the third anniversary of dollar milk coming up this weekend, official inflation figures point to a pick-up in grocery prices that could boost margins for supermarket giants Woolworths and Coles after years of savage discounting.

 

The Consumer Price Index for the December quarter included a 1.1 per cent increase for food and non-alcoholic beverages compared with the same quarter a year earlier, a sharp turnaround to the 0.6 per cent annual decline seen in the September quarter.

 

The Australian Bureau of Statistics said the main contributors to the rise were fruit, which rose by 8.1 per cent, and vegetables, which were up 7.1 per cent following "a number of adverse weather events and deteriorating growing conditions in some areas".

 

Deutsche Bank analyst Michael Simotas said that excluding the impact of restaurants and fruit and vegetables, food inflation was about 0.7 per cent -- the biggest increase since the June quarter of 2011. Mr Simotas said while the correlation between the CPI and inflation reported by Coles and Woolies was "somewhat loose", the figures did point to a "substantial improvement in deflation" for the supermarkets during the quarter.

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WOW is a stock that doesn't generate much interest in forums,however there are many worse stocks around.Safer than a BankÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¦I'd say so!

Despite WOW having had a good run of late,the TA suggests a further increase in SP is on the cards.The point and Figure chart shows a breakout:there should be a couple of dollars( at least) upside from here.

Will be buying sometime this week.

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Thought about WOW previously,but declined.

Looks better today.Some favourable momentum divergences developing.Purchased 7000 at $30.00.Quite like these large liquid stocks:one can always exit,which is not the case with penny dreadfuls.

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Safer than a bank?

If you follow what has been happening with the big supermarket players in the UK as the result of shifts in consumer attitudes, you can see the same trends appearing here. The march of the discounters is underway and the market dominance of Woolworths and Wesfarmers is no longer a sure thing.

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