It looks like the bottom is in imo:1. Wesfarmers' CEF division...

It looks like the bottom is in imo:

1. Wesfarmers' CEF division is now the second largest line of business. This division, with lithium inside, looks like a freight train that cannot be stopped.

2. Surely, I'm not alone in thinking Bunnings is like a freight train with mass and momentum, which also appears unstoppable.

3. Full year NPAT was down only 2.9% with lockdowns. Going forwards, lockdowns appear unlikely, so NPAT will climb.

4. Look at slide 58. We are well passed peak capex. $500m of capex is for lithium. Excluding that, capex is significantly lower, which should generate FCF and dividend increases.

5. Management, relative to ASX listed companies, do not appear ego-centric and asking for red-carpet remuneration. The first point still says "satisfactory return for shareholders". This shareholder-friendly approach will always trade at a premium - I don't care what you say. You can knock yourself out by buying stocks where boards and executives pay themselves ludicrously.

All in all, my view is that the bottom is in. We are headed for a >$60 share price without lockdowns.