WOW 0.97% $32.63 woolworths group limited

commsec targets sp $36!, page-39

  1. 599 Posts.
    WOW is in a tricky spot.

    - Given market share to Coles (since WES takeover) and Independents (including ALDI).
    - But grown earnings through increasing margins (world record, not a sustainable strategy).
    - Strategy presents nothing new.
    - Masters was the big growth avenue, $2B capex @ 15% ROI, makes $300m, but now it's loss -$150m. If you add $450m to earnings, you get WOW annnual growth of 5%+.
 
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