Daytrading May 21 pre-market, page-2

Thanks HLL great summary.

The iron ore news was particularly interesting. Our smaller producers (including FMG) are going to be in big trouble with that sort of additional capacity coming on-board.

It will also put pressure on BHP, going from 2nd place in cost to 3rd.. as well as facing shrinking margins after cutting away its 'non-core' divisions into S32... which included some decent assets.

I was reading up on Woolworths vs Coles vs Aldi today also, it should be interesting to note a few things, firstly that woolworths still has a MAJOR market share advantage, selling almost 20% more per year than coles and making 2.5% more margin average.

While those advantages have shrunk the last 5 years (which the articles seem to think is because coles is refurbishing more stores, it also coincides with the coles/master-chef dual branding... coincidence?) they still hold a majority share in most of their business areas and will continue to enjoy that for some time.

Another benefit woolworths has up its sleeve is the growing Masters business, while not huge yet, they have gained marketshare and margin since starting up against bunnings and with the home timber and hardware brand-name in their lot, they could merge the two and create a successful market-share owning in that area, something coles and Aldi don't have.

The market is likely to kick this stock a few more times, but its worth keeping an eye on the PE ratio, and when it looks like good value compared to past values, that's the time to buy...


PRR - going to be CRAZY. 300% rise in the USA after a 200% rise yesterday. They do know how to buy over there.