WOW 0.20% $34.38 woolworths group limited

expensive and in debt

  1. 4,005 Posts.
    Let's look over at some facts..

    Sales good since taking over Australian Leisure and Foodland and will continue to be steady.

    Bad news..

    Debt has risen from $164 million 18 months ago to $3.4 billion.

    Woolworths now has to DIVEST to pay off some of its debt, this means Woolies will sell its distribution centres for some $846 million to pay off some of its debt.

    These distribution centres has generated savings of $3.6 billion over the past five years, some 5% of WOW's sales over the same period.

    Woolworths will not acquire any more companies for a long time therefore it will need to depend on genuine organic growth. AT current prices Woolworths is paying a 2.8% dividend at 24 p/e and has to DIVEST.

    My gooness, Woolworths is shaping up to be the short of the decade... oh, I almost forgot, Corbett retires this year too..

    mmmmmmmmmmmmmmmmmmmmmmmmmmm
 
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