DAMN RIGHT!Here's an article about the same old same old from...

DAMN RIGHT!
Here's an article about the same old same old from David Errington, who seems to have a permanent vendetta against WES:

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Merrills calls for Wesfarmers break-up

Analysts [PLURAL? WHO ELSE BESIDES ERRINGTON?] are calling for coal to supermarkets conglomerate Wesfarmers to be broken up to grant the Western Australian company fresh capital to bolster its retail operations.

A Merrill Lynch report says Wesfarmers' retail businesses - including Coles supermarkets, hardware giant Bunnings and discount retailers Target and Kmart - were "unlikely to reach their full potential whilst being part of a conglomerate that is capital constrained."

Merrills has forecast Wesfarmers' non-retail businesses - coal, chemicals and fertilisers, insurance - will bring in just $230 million in earnings before interest and tax in the 2010 fiscal year, as weakened coal and fertiliser prices, and tighter insurance margins hurt earnings, Bloomberg reports.

"Although management of Wesfarmers argues that it can improve Coles without increased capital, we believe that is not correct," Merrills analyst David Errington said.

"We now believe the conglomerate structure is an impediment to Wesfarmers businesses reaching their full potential and consequently an impediment to the company's valuations." [WE? WHO ELSE BESIDES Y-O-U, MR ERRINGTON? OR IS THAT THE ROYAL WE?]

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I think it's fair to see that CONGLOMERATES go in and out of fashion with Analysts and the Business Press, but guess what? Investing is NOT a fashion business! Otherwise, investors like Warren Buffett CANNOT exist, according to finance theorists who believe you can't beat the market consistently over time!