WOW likely to take a big hit

Almost everyday we read of resource companies taking a big hit and write down of assets. So far Anglo the biggest with US$4.5Billion!! Woolworths have been outwitted by Coles and Aldi and current CEO and team seem clueless re what to do. Afterall, they caused the huge loss in mktshare. O'Brian would have already gone had someone been willing to fill in while a perm replacement is found but he is still there.

My hunch is when new CEO is appointed he will clear the books with some huge writedowns esp re the Masters fiasco. Expect sales to figures for June qtrto be dismal and can't see SP leaping back above $30 anytime soon.

John Durie (Oz) writes:
'By August 28, the day its full year results are due, Woolworths in theory will have two new board members — one of whom will be the incoming chair.
That is the game plan which the board is working on, which will also see chair Ralph Waters signal his departure to pave the way by November for a new chief to work together with the new chair.
All those involved understand none of the above is a textbook solution, so the game plane is a second best solutions.
Ideally current chief executive Grant O’Brien should be out of the building now, given he has signalled he doesn’t want to be the long-term boss.
But with no-one on the board willing to step in and obvious successors like Brad Banducci fully occupied trying to get the supermarkets working again, O’Brien is staying in the chair as the lame duck CEO to handle day-to-day chores.
Not one member of the present board was around when the decision was taken to enter the Masters nightmare, although there is support for the concept that in time there is an opportunity to make money in the space.
The Masters and Lowe’s joint venture was unveiled in August 2009 and the longest-serving board member is Jetstar boss Jayne Hrdlicka, who started in August 2010.
Jillian Broadbent and Ralph Waters started in January 2011, a few weeks before Grant O’Brien began in April 2011.
Former Tesco executive Christine Cross and former Kellogg boss David MacKay started in January 2012.
Former NAB executive and Deutsche Bank executive Scott Perkin have both been with the board for less than 12 months.
There has clearly been board renewal and more is coming with the imminent appointment of two newcomers in the next few weeks.
The point also being that the CEO and the major strategy calls were made before this board was in place.
It now has the responsibility to turn the big ship around.
The spotlight will be on the new appointees as the next step in the process.'

http://www.theaustralian.com.au/bus...olding-game-plan/story-e6frg9io-1227449005012