76 replies to this topic

[Procrastinator]

Impairments???
 
I'd suppose its Nigeria... they made a decision to exit the market some months back ...could be assets that side being written off.
 
Don't think its anything to do with credit retailing.
 
Other than that I wouldn't know. Will have a better look at the announcement over the weekend to make sense of it.

I think it is maybe their credit book, all the people with accounts?, doesn't seem to be big news as i just happened to catch a comment on BDTV, but is prob no higher than normal or am sure there would be more of a hoo ha by the market commentators, this share also seems to have taken a proper smack of late.

[ThatBlackGuy]

I heard that impairments are up on this share, anyone know what percentage increase?

 

Impairments???

 

I'd suppose its Nigeria... they made a decision to exit the market some months back ...could be assets that side being written off.

 

Don't think its anything to do with credit retailing.

 

Other than that I wouldn't know. Will have a better look at the announcement over the weekend to make sense of it.

[Procrastinator]

I heard that impairments are up on this share, anyone know what percentage increase?

[ThatBlackGuy]

I thought that was a pretty good set of numbers released by Woolies ... given the backdrop.

 

on a P/E of 17 and a forward of about 14. 

 

When does this stock become a dripping roast?

[delta66]

market likes it/so do i

[ThatBlackGuy]

Clothing up 11% ( with 4.5% being price)

Food up 16.7% (with 7.4% being price)

 

What's the verdict?

[Zero Hedge]

Time to buy again...hope you are also buying Batman. Company will give sales update at its AGM later this month and it should be well received by market. Apparel sales will be ok but expect very strong performance from food. Country Road and Witchery sales in Australia was reasonable for quarter ended Sep.

[BBW]

SL hit. Damn, this share's just costing me money, every time I buy it. Just don't seem to get my entries right, and WHL's actually for my long term portfolio. More downside to come??

[The Batman]

i will hedge you

[Zero Hedge]

It was actually my second post where I said what the company have to do for share to go up from here. It was never about the results but all about the future prospects and it seems rosy for now...providing interest rates stay where they are. But remember to lighten up when the SARB one day starts to hike rates...

[Zero Hedge]

Did you...really? WHL was at 6400 when we started the argument. Closed today at 6500 after it was ramped 1.8% in closing auction. You are thus 1% in the money since 18 Aug...its a little to early to declare yourself the winner don't you think? Do yourself a favour and go and read my first post again...I said the share could go up if Ian Moir says the right things at the investor presentation re further margin expansion opportunities. That was always going to be the key! The company is guiding for 100bps margin expansion in food (from 6% to 7% by 2016)...this is huge and a very pleasant surprise (as it is not in consensus estimates). The margin guidance coupled with what seems like short covering by large US Hedge Funds resulted in the stock being up 9% on the day (which is why you are now 1% in the money). Just so that you know...we are the same way on the stock but its only 3% of my portfolio. I am not as brave as you to stick all my money into one share. This market is far to dangerous and fickle for that. Look what the foreigners did to Discovery over the last 2 days...companies can't miss expectations in this market! Will be interesting to see what WHL's do tomorrow. We will chat again.

[The Batman]

I HAVE WON THIS ARGUMENT

[Zero Hedge]

Guess what I am trying to say is the base going forward is very high so the chances of an earnings surprise going forward is slim. Market looking for +20 perc growth for FY14 which will be a stretch without further margin expansion (which seems unlikely given the fact that you saw 300bps margin expansion over last 3 years) or the conversion of African franchises. Going forward earnings growth will therefore most likely track turnover growth circa 14 to 15 perc versus market expectations of plus 20...so earnings risk is to downside. Just my five cents and I would like to think I know the company a little better than the so called expert.

[Zero Hedge]

I am more than aware of the aggressive store roll out plans in particular for food but do yourself a favour and go check what happened when they last rolled out new stores this aggressively which incidentally coincided with the turn in the cycle...just like today. Same store sales went for a loop due to cannabalisation. Also check what happened to food volumes the day rates starts to rise...it won't happen tomorrow but it will eventually happen. I am not saying Woolies won't go up from here but a lot will depend on outlook and prospects for further margin expansion in apparel. Also the company had a lot of tailwinds over last couple of years eg franchise conversions, WItchery acquisitions, favourable fx cover etc but all these are now in base. Strip these out and true organic growth was a lot weaker than market thinks. Also why was Woolies the only apparel retailer not to benefit from problems at Edgars. Woolies actually lost market share in apparel over last 4 years whilst rest all took share from Edgars!

[The Batman]

Ok so I'm adding some leverage here from the experts:

 

http://archive.abndi...rths-Hot-or-Not

 

You can't beat the "Inelastic consumer". So true.

 

Capital expansion is quite substative at WHL. Go check it out. No worries for future growth.

 

And I do know that this growth was already anticipated. But really of this magnitude?When all other retailers are failing.

That wasn't anticipated with the decay in retail sales lately. But wait WHL has the "Inelastic consumer"

 

The only cause of the drop was the general global QE scale down and the bad retail aura. Not WHL's true intrinsic value.

 

I believe so much that I've dumped 60% of my portfolio in this one. Smiles coming. At least above R75 ps

[Zero Hedge]

Market is looking forward...strong results not a surprise or a catalyst as we already knew since Aug 2012 that FY 13 will be good. So strong trading update was no surprise. Market worried about outlook going forward in light of slowdown in apparel sales in H2. Also share still no dripping roast plus rising bond yields not good for rate sensitive stocks. Could easily see this one derate further as market starts to discount more normal rates environment.

[The Batman]

I wonder why people are selling off WHL. The place is gonna be a gold mine in 2 weeks when the AFS get released. 30% increase in HEPS and obviously a sizable dividend declaration. The only retailer to fight the current bad retail aura. Its like leaving a party before 7PM.  Watch this share!