Steve, I haven't been a Warehouse shareholder for a while. I got out 'too early' (said with hindsight. Of course I considered it a great deal at the time because I didn't regard Tindall as a willing seller back then). $5 was a good price when I got out because Foodstuffs were prepared to pay that premium to get in the share registry door.
Based on trading performance WHS wasn't worth anything like $5 and even today I would rate the 'intrinsic value' of WHS as below $5. Of course the 'strategic value' of WHS is quite different.
The $5.70+ price range only came into play after Tindall decided to try to privatise the company aftwer Foodstuffs was established on the share register. Woolworths Australia came out of the woodwork to trump that bid and establish their own blocking stake. Both Tindall and Foodstuffs involved Australian merchant bankers in thier proposed takeover bids. The merchant banking market has taking a bit of a hit since then. My feeling is that neither Tindall nor Foodstuffs will be able to fund a bid at the oft rumoured $7 takeover price. That just leaves Woolworths Australia that probably could. However, with 'no competition' why would they?
If I was WOW management I would wait for the retail downturn to bite further then wade in with a $6 bid in a couple of years time. There is certainly no hurry to buy WHS because Woolworths can block any other bid in the meantime.
I can see both upsides and downsides in WHS at $5.70. But with so many other great retailing companies selling so cheaply, I'm not chasing WHS myself as an investment proposition.
SNOOPY