WOW 0.30% $32.89 woolworths group limited

Still 2 big issues regarding Masters. If Lowes announces they...

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  1. 599 Posts.
    Still 2 big issues regarding Masters.

    If Lowes announces they want to activate the 13 month buyout, that will be a shock for the SP at anytime, and WOW will have to spend about 800k to buy them out. Combine that with current capital spend on Masters, thats over a billion and best case scenario is that, that billion breaks even sometime.

    If that billion of capital was spent at 20% over 10 years (for example) from Masters start to break even, that billion turns into over 3 billion cash flow to reinvest which they will be missing. That'd be about a 30% increase in earnings they're missing.

    Wasted capital may not hurt as profit may only be affected by 1-2% short term, but long term it's hard to outperform with it tied up.
 
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