Might be able to pick up a sub with your increase in super? ;)
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Not much action on this SP... market very cautious on retail. Market might want to see progress before it takes more of a position.
Lots of dog talk on retail thread so pallets of dog food at the Red Sheds is relevant
Tux Original Meat biscuits at $45 for 20kgs seems a great deal.
Should sell even more now households have to trade down to cheaper cuts …..pets not excluded
Speedy Az doesn’t have Tux …even though a retired professional sporting great he still gets the real stuff like Coprice Working Dog - $65 for 20kg any delivered from local Seed and Food Barn
But Warehouse should do well with their dog tucker ……good range of other pet stuff as well at good prices
WHS might actually be a bit of a trading stock from here on in rather than HOLD for DIV as its up side is limited.
Not as if W(^n) it going to double in value any time soon.
I disagree and can see them doing $140-150m per annum once Covid is in the rear view mirror which could see dividends of 30 cps fully imputed a possible forward gross yield of 13% ! in 3-4 years time. I think the consumer is still in good shape with much reduced credit card balances after spending so much time confined last year and unable to travel. This is very much a counter cyclical buy for me. All people can see at this point is the consumer is under pressure. I foresee it differently.
On CNBC this morning they are saying 30-40% of consumers will be trading down in brands from name brand clothing and stuff to generic brand stuff like WHS sells. Companies like WHS selling consumer staples will prove to be very resilient. I see Walmart and Dollar General are doing well in the US market so consumer staples are a good place to invest in these uncertain times...and then there's the yield projected for FY23 of 10.9% !
looking for a new corner desk , warehouse stationary has half the range out of stock ..... wonder how well there sales are going with such out of stocks
Product substitution has been going on for a long time now. You buy whatever product does the job best you can get your hands on. Freight rates are coming down. WHS for example paid 111% more in shipping charges in the last half than in the previous corresponding period, which itself was at elevated level's. Yes the current supply chain is a problem and NO it won't always been this way.
Try buying a new EV and see what the stocks are like lol
Spot on …..punters / commentators / economists sucked into thinking there’s a crisis ….and it makes for good media. Love how we see consumers being interviewed on the TV news saying it’s a crisis blah blah blah …..they never interview people who would say yep prices going up but they always do and we’ll manage.Quote:
Originally Posted by Beagle;950944.
There’s always been a number of consumers ‘under pressure’ so what’s new these days …talk of ‘crisis’ just noise…….. but it sounds good.
NZ retail will be OK ….esp WHS stores whose sales in F22 will still be over $3.4 billion
From CNBC (naughty reading such a site) but if NZ consumers think same way as US ones Warehouse will do OK (and Turners will like it that delaying purchase of car is a “last resort” measure to get by.)
If nothing else interesting
Thanks Winner, excellent post. A lot of people don't understand what consumer staples are. Many think its just food and beverages but the term also covers household goods, see Investopedia https://www.investopedia.com/terms/c...al%20situation.
Staples include household goods like a new washing machine or fridge from Noel Leeming because your old one just died, a new cellphone for your teenager because she just lost her's, again, some new generic brand winter clothing from WHS for your kids to keep them warm in winter, some cheap Easter eggs so you can have some happy times with an Easter egg hunt at Easter time and so on.
WHS, Noel Leeming generally sell consumer staples, things you buy regardless of where we are at in the economic cycle.
Excerpts "More importantly, the consumer staples sector has outperformed the S&P 500 during the last three recessionary periods—or periods of negative growth in the gross domestic product (GDP). Due to their low volatility, consumer staples stocks are considered to play a key role in defensive strategies".
KEY TAKEAWAYS
Consumer staple stocks represent companies that are noncyclical because they produce or sell goods or services that are always in demand.
Characterized by steady if unspectacular growth, the consumer staple sector is a haven in for investors in recessionary times.
Consumer staples stocks can be a good option for investors seeking consistent growth, solid dividends, and low volatility.
Gee that honey on special this week is really, really cheap, almost a luxury item these days for some families but definitely a consumer staple at that price ! https://www.thewarehouse.co.nz/c/foo...FVSErAIdNn0Nkw