For a while now, the day ends in a big sell off. Off note, is...

For a while now, the day ends in a big sell off. Off note, is that this is also associated with the largest volume for the day.

Woolies is a great stock, but I think the market is trying to look into the future to see what should be the appropriate PE for this stock, which seems to have its best growth days behind it. Valuations for this stock based on past performance do not fit here, as the future will be different for WOW.

There really is no growth here, the hardware partnership included. Will it be tempted to move overseas and would that be the death knell. Is a fair PE now 16, rather than 20, I think so. Great stock, but no great value at this price, fair value me thinks.

I use a valuation based on past performance, particularly ROE, based on the Mary Buffet formula, based on this the current share price would give you a return off about 7 % per year for the next 10 years. That may sound reasonable, but Buffet would look for at least 15 %, maybe less given this stock has a substantial moat.

A forward looking formula, like Roger Montgomery's has given me a valuation of about 25.27 currently for this stock. This is based on current analyst predictions for this stock.

Just my opinions for what's its worth.