My support for WOW on HC is self-evident. I was expecting EPS to increase 7-8%. Wegot 5%. But what smashed SP was the subdued forecast of '2-6%'. If we take the middle figure this eans WOW will grow at about 4%. It may not sound a lot but extrapolated over several years big difference between 4 & 8%. WOW are veryeffecient and may scrape a bit more from margins, but with Coles running its 'down-down' campaign... it will make price increases dufficult.
Dominant position and pricing power, high food inflation, strong AUD, will continue to benefit WOW. Plus WOW's strong cashflow and low debt will ensuredivs will continue to increase. But am now thinking of WOW as a dividend stk and not a company that can grow at anything like its previous rate. Assuming divs grow at 6% over next few years it should support SP. But halycon days appear to be over. So question remains: Is WOW worth buying at $25.75? IMO it is. But don't pay $26.75.
rethinking woolworths
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Last
$33.79 |
Change
0.190(0.57%) |
Mkt cap ! $41.27B | |||
| Open | High | Low | Value | Volume |
| $33.60 | $33.82 | $33.45 | $32.05M | 951.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1518 | $33.79 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $33.80 | 9055 | 3 |
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| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| WOW (ASX) Chart |