WHS have some major labour costs to deal with over the next couple of years and moving into food with what i understand are poor DC systems is going to hurt even more i reckon
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No problem if its not for you mate. Average analyst forecast is for steadily growing earnings and dividends and that's on a dirt cheap PE and the average analyst price target is $3.70. I guess people see what they want to see.
I see a long and highly credible history of excellent fully imputed dividends and forecasts suggesting that will continue.
In the erly 2000's I was part of a study that a few retailers were undertaking as to whether there was a trend from consumers 'trading up' to one of 'trading down'. Warehouse was one of the participants and we had the benefit of being assisted by a consultant with a lot of global knowledge of consumer trends. The timing coincided with the arrival of big box retailers like Bunnings into NZ and the likes of Warehouse were a bit concerned about what may happen.
The conclusion we came to was that if done well 'Cheap is Good'. But what I thought was fascinating was that the 'trading down' market was estimated to be about double the size of the 'trading up' market ...... and that when consumers became a 'trading down' one (usually when times became tough) that attitude stayed with them for some time.
Maybe these things came and go and we could be seeing a new wave of 'trading down' consumers .... and they will stay that way for some time.
Might try and find the report ….got it somewhere
WHS - My rudimentary technical analysis thoughts. Someone else might like to post a chart over the last 6 months but to me this looks like its built a pretty good base in the low $3's since late January. TA experts will have their own theories but in my experience a base built over 3 months or more is usually a very good sign for the future. The fact its built this base while also going ex a 10 cent fully imputed dividend is something I find quite encouraging.
encouraging to see the re emergence of grocery aisles in WHS these days and prices that are noticeably lower for staples than those of the duopoly
Nice block at 3.20. Someone holding sp there so they can accumulate more at lower price. Or is it my suspicious mind.
I think he's talking about a block of shares mate. Not likely anyone could sell a decent block of cheese or butter for $3.20.
good things take time apparently....
https://www.youtube.com/watch?v=qcILD9OJ2wg