Hey guys, i have been doing research on WOW for sometime now....

Hey guys,

i have been doing research on WOW for sometime now. Thought id let you guys in on my personal opinion.

Woolies suppermarket division is well placed in then australian ecconomy, it operates within the middle market range, which i belive targets a wider audience then the lower budget and high end retailer as low income earners feel 'privlidged' to shop at woolies and higher income earners feel confortable shopping in the stores.

WOW as a company has some very exciting business ventures in dan murphys and thomas dux, which will experience rapid growth in the coming years.

WOW management to date have capitalised very well on capturing organic growth within the woolies brands and should be able to continue this with ease in the short term with re-branding, eco friendly stores and inhouse branded products.

As for the Woolies Vs. Coles, well everyone knows these are both great supermarkets but woolies seems to make better profits.

WOW debt position is very conservative and its abouslutely amazing to see a business acheive growth without the need to leverage itself with high levels of debt.

WOW is crunently trading around a 3.7% dividend yeild (fully franked). With interest rates expected to reduce to around 2.5% - 2.75%, surely monely will be poured into a low risk investment such as WOW as investers will seek higher returns.

Iam also expecting WOW to buck the trend with the general market and announce growth in their dividend payouts.


I have a buy reconmendation on WOW around the $25 mark.

Joe