WOW trades on a high P/E because it is as quality business as we...

WOW trades on a high P/E because it is as quality business as we have in this country operating in a duopoly environment. Plus, it mainly supplies non-discreationary items, meaning its sales numbers are less effected by a downturn in the economy.

It was on a P/E of over 20x earnings which means it is basically priced for perfection. If there is a slow down in spending, not only does the E in this equation fall, but the P/E will contract also, as falling earnings is not perfection. The more certain earnings are, the higher the P/E. The uncertainty for the Australian economy going forward means investors will contract this P/E.

WOW is now on a forward P/E of less than 16x. While it make come back further, rarely do you get to buy a company of this nature on that sort of a P/E, therefore I think it is great buying for the long term.

WOW has seen many competitors come and go since it was founded in 1924 and has managed to not only survive, but continue to increase market share. Currently over 50% of the market.

You can say farmers are doing what ever the hell you said they were doing, but this does not impact WOW. What is more likely when prices of food go up, people stop eating out at restaurants, or people stop doing their grocery's at WOW? Infact, as food prices go up, WOW will benefit. Likewise as the economic conditions get tougher, people shop at WOW. This is the beauty of selling non-discreationary items on a mass scale. You can be sure that WOW will continue to deliver earnings growth and will again trade on a P/E of 20+x once the market regains some confidence.