WOW - WOOLWORTHS GROUP LIMITED

[healyn]

In reply to: jaolsa on Monday 16/04/07 11:45am

Well Jaosola I can only say one or two things about your comment. People have gotta eat. I just can't see you munching on a bit of nickel or digesting a gutful of U308. Eating is a hugely big thing in my life, just can't seem to see myself doing without it.

[early birds]

In reply to: healyn on Monday 16/04/07 08:24pm

well HEALYN,

you are right about "people gotta eat".

but Joalsa is right about higher p/e that WOW current traded. and if tomorrow's number doesn't back up this run up-----watch out. you might going to hunger strike at wolie's office. http://www.sharescene.com/html/emoticons/lmaosmiley.gif

 

 

 

 

[healyn]

In reply to: early birds on Monday 16/04/07 07:12pm

I reckon the figures will be back up the run up. It has been going on for some time now. A sudden and substantial retrace would be a problem and not only for WOW.

[jaolsa]

In reply to: healyn on Monday 16/04/07 09:17pm

hi all

 

i agree that wow is a very well run business......and has highlighted time and again how hopeless coles management has been....and thus, one could argue that justifies its hefty pe.

 

i guess if i agree/disagree with that statement really matters not. so, let's leave the argument of pe to one side and just focus on its share price.

 

at the end of january, wow reported that its sales were up and increased its fy forecast by 8-12% - and its sp was about $23. based on today's closing price, wow's sp has increased about 25% since jan ....so one would hope that tomorrow's figures are more than just outstanding to justify today's closing price.

 

by the way.....i haven't taken out a short position on wow........i was just wanting to highlight how absurd today's price movement was when it usually puts on at most between

0.5 - 1% on a good day.

 

anyway....let's see what tomorrow brings.

 

 

[jaolsa]

In reply to: jaolsa on Monday 16/04/07 10:07pm

and report is now out........wow maintains its fy forecast......and surprise, surprise, its sp isn't powering today.

 

watch out for profit takers.

[jazzmoo]

On those numbers today and the PE I think you'll see a long slide in the share price now. I too was thinking of shorting. Mind you, I think this has a long way to fall so you could still make some money.

[AJ_]

looks like wow is heading south on intraday chart, probably just profit takers due to recent sp appreciation... since overall market is up...

[Danville]

If I am reading this correctly - this quarter increase in sales up 8.8% - full year projections of 8-12% growth. That doesn't offer a tempting growth picture for the rest of the year. Correct me if I'm wrong, please. I shorted this yesterday

[jaolsa]

In reply to: Danville on Tuesday 17/04/07 10:37am

well done danville.....i'm on as well now.

[darbyone]

In reply to: jaolsa on Tuesday 17/04/07 10:39am

I wonder how many SMSF are invested in blue chips like WOW , the big banks etc and within those funds just how much is held in "Pension Mode" by individuals now over 60 and subject to the new no tax rules?

 

I know I (Luckily) recently converted all my dividend paying blue chips into "Pension Mode" for this reason and now find myself in the enviable position where I can reduce holdings like WOW without suffering capital gains tax , forrgoing the 3% dividend for a cash (Untaxed) cash rate of 6.5% and ride out what increasingly seems to be a nasty sort of correction with possibly even rocks like WOW eventually coming under pressure.

 

(Their chart looks toppy to me)

 

Of course one forgoes the imputation credits and has the problem of knowing when to reenter but having that cash there and possibly being able to reinvest (Not necessarily back in WOW) at a later date with a lot more bang for the buck has made the decision for me.

 

Just musing whether others feel the numbers involved here would be enough to change the market dynamics of the past a bit

 

Cheer$