The amazon affect... IMO shouldn't exist and provides a buying opportunity. Bunnings have successfully created a culture of the trip being an outing... People go for the snag, the friendly staff and for a family reno outing - IMO this is not going to change with amazon.
At $2.75 last year I though BWP was a buying opportunity, I feel its fair value around the $3 mark and I am not a buyer just yet... Rent is boring yes, but my investment in BWP has returned a compounding return of ~15.5%p.a. which is about 60% dividends and 40% capital growth - if you can get a company like BWP cheap than it is money for jam.
The sell off last year was due in part to masters folding and the thought that Bunnings would up and leave a couple of BWP stores - never eventuated BWP occupancy rates are like 99% (not sure but really high, check financials).
Furthermore BWP has made no acquisitions for a long time, however have made some divestments = better cash position now that 3 years ago, when the market is right they will use that cash position to fund acquisitions. It's a solid company - any further fall and sub $2.80 I will be a buyer.
Fair Value, page-2
Add BWP (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$3.43 |
Change
0.010(0.29%) |
Mkt cap ! $2.447B | |||
| Open | High | Low | Value | Volume |
| $3.43 | $3.46 | $3.42 | $1.856M | 539.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 9352 | $3.43 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.45 | 46606 | 3 |
View Market Depth
| Last trade - 16.10pm 04/11/2024 (20 minute delay) ? |
| BWP (ASX) Chart |