A few years back Woolies was a takeover target and I guess it still is with a forward PR of 17. They still have massive growth coming up which some analysts have dismissed. The Pharmacy business is massive and they are running scared at Woolies move into their market.
Pharmacies charge around 40% too much for their products and hence their owners make abnormal gains. Places like Pharmacy direct give you decent prices but lack the convenience of shopping at somewhere like Woolies.
That along with petrol will see good growth. Then they have their project refresh II. That should deliver big costs savings and hence boost EPS. Woolies doesn't want to be taken over and hence are active with share buybacks etc to maximise shareholder wealth without the need of a takeover.
Anyhow, WOW looks like it might get re-rated 30% odd. Could take some time but it's cheap now.
Cheers,
Munch.
roger corbett on business sunday , page-2
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Last
$30.85 |
Change
-0.170(0.55%) |
Mkt cap ! $37.75B | |||
| Open | High | Low | Value | Volume |
| $31.00 | $31.06 | $30.80 | $11.36M | 367.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 743 | $30.84 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $30.85 | 1631 | 13 |
View Market Depth
| Last trade - 11.39am 14/05/2024 (20 minute delay) ? |
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Last
$30.91 |
Change
-0.170 ( 0.41 %) |
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| Open | High | Low | Volume | ||
| $30.96 | $31.06 | $30.80 | 72476 | ||
| Last updated 12.00pm 14/05/2024 ? | |||||
| WOW (ASX) Chart |