stefanis,I am buying some WOW shares for my two young sons this...

stefanis,

I am buying some WOW shares for my two young sons this week. One just had a birthday so an extra incentive as he is now a year older. LOL!!

Its a hold and accumulate for both of them.
The shares will be bought under my name and assigned into a portfolio for both of them.

Did look at both WES & CCL. However, i am quietly confident WOW will be a good performer over the longterm.

The 99 page presentation helped to make my decision easier.

A couple of things in comparing Coles to Woolworths. Coles have alot of very old stores that will require a very large injection of capital to get them up to scratch.
What did they do with the old Franklin stores? Nothing much apart from changing the sign at the front. Speak to a few Coles employees and you will see a fairly dissatisfied culture that can hardly wait to get out of the place. They may appear to be clean at the front and in the store itself. Check out the back of the store.
You raised a very valid point regarding the DC distribution. I have been to a couple of theirs as well as Coles DC's. Big difference. Their logistics are way superior in efficiency to Coles. You only need to to see the decrease in costs over the last few years and the streamlining of the DC's to see it will pave the way for market efficiencies.

WOW has made it clear their first priority is Food & Liquer. I can see a big change in their own branding of products being at an aggressive forefront of major growth in both food and Liquer. 39 new stores this financial year. Went to a few Countdown stores whilst in NZ last Christmas. Good clean stores along with excellent customer service. No complainst at all.

They are opening up a Masters Improvement store every 3-4 weeks. I have never shopped in one except to say i think it will be a long road ahead for them up against Bunnings. Mitre10 has never won me over from Bunnings as they just don't have as many products and i prefer to go to one place when it comes to hardware and home improvements. Will be interesting to see Masters develop over the next few years.

Not sure what they are planning to do with the Dick Smith stores.
Been into a couple. Not overly impressed.


Overall, seems like a good time to buy.

I have at as a P/E of 14.0

Cheers markco2