Maybe a majority stake will be enough for foodstuffs???? and then let woolies sit and stew as a minority
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Maybe a majority stake will be enough for foodstuffs???? and then let woolies sit and stew as a minority
Applying for Commerce Commission approval is also a cheap method of under-pinning the share price without having to outlay a couple of hundred million in borrowed readies. It has the added "Art of War" bonus of making any shares a competitor buys (especially a better financed competitor) more expensive so that if an eventual takeover battle is lost, the returns demanded by the victorious competitor actually render them less competitive in the process. ...i.e "synergy" savings are eaten up by lower returns / higher initial sunk cost, making the prospect of aggressive market share expansion less attractive and thereby protecting Foodstuffs patch.Quote:
quote:Originally posted by living2
Maybe a majority stake will be enough for foodstuffs???? and then let woolies sit and stew as a minority
Just sit back and enjoy the ride. :D
Do Commerce Commission applications have to be publicly notified? The news has a strategic smell to it... ;)
Looking at WHS on a trading level (excluding property disposals etc), it would appear that the company is holding up well given that the economy is slowing. It is good to note that operating margins are being maintained
Warehouse Christmas trade below expectations
"Our trading result over the total Christmas period was our best for three years but still below our own expectations."
Same store sales for The Warehouse during November and December were 2.3 per cent ahead of the same period last year, with total sales for the first half of the financial year ended January 28 expected to be 2.9 per cent ahead of the same period last year, The Warehouse said.
Operating margins for the first half were expected to be maintained at levels similar to the same period last year.
Will WHS end up like SCY and generate its growth from its finance arm?
The Warehouse - one of its best kept secrets
The Warehouse Financial Services (WFS) may do little in the way of advertising, but it has quietly been building itself up into one of the heavyweights of the consumer finance sector.
"I think we make a healthy contribution to (the company's joint venture owners) Warehouse Group and to Westpac," WFS general manager Ed Hayes said, although he refused to disclose any financial details.
As it turns out, that "healthy contribution" was $14.14 million which WFS paid out in dividends last year, giving The Warehouse and Westpac just over $7m each, although those were the first dividends they have received since setting up the joint venture in 2001.
In terms of its asset base, WFS is a middling player in the consumer finance market, with total assets of $83.3m.
But when it comes to profitability, WFS punches well above its weight.
The company posted a net profit of $7.9m for the year ended September 30 and only three of the 10 companies in the KPMG survey earned more.
Way the price falling the last few days makes you think that Commerce Commission has some bad news on the way
Anybody taking a gamble ..... +ve from CC and WHS goes back to 750 .... +17% .... worth it?
I wouldn't take the bet. Commerce commission should decline as it will substantially lessen compettion in the supermarket business, there are enough barriers to entry for any new competitor ie RMA, why would the CC seek to preserve a duoploly.
Works for Foodstuffs and Woolworths as they will appeal with the effect of delaying the launch of any new Warehouse Extras.
i don't think it will lessen competition in the supermarket business, as the warehouse isn't seriously in the supermarket business anyway!
do you know anyone who buys their food from the warehouse? i don't
And at this rate no-one ever will, so duopoly profits will continue for Foodstuffs and Woolworths.
Competition is good for the economy. For this market it will give consumers more cash to spend on other products and services, and prevent ditributed cost and concentrated benfeits for supermarket Foodstuff owners and profits from leaking offshore to Woolworths shareholders.
CC will be wel aware of this and should have the numbers to back this up from overseas markets.
They will now be dotting their i's and crossing there t's anticipating the appeal.