Coles Myer Limited
Recommendation
Coles Group Limited -
CGJ
Current price
$15.25 at 16:10 (09 November 2007)
Price at review
$5.81 at (20 September 2002)
All Prices are in AUD ($)
Ever since Coles merged with Myer Grace Brothers in the early 1980's there's been a distinct lack of harmony in the boardroom and a resulting unspectacular performance from the stock. And, after recent differences between its chairman, Stan Wallis and long serving director and significant shareholder Solomon Lew became public, the situation hasn't improved. Along with these concerns has been the high turnover rate of senior management. Today, there's been another change to report. Chief operating officer of general merchandise (Myer Grace, Kmart and Target), Warren Flick will finish up in December. CEO, John Fletcher will take over. This could indicate that a break up of the company is looking increasingly likely but as we keep saying, anyone can make money running half of an effective supermarket duopoly. And with the rest of the business thrown in for free, we're maintaining our LONG TERM BUY recommendation.
IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
Recommendation
Coles Group Limited -
CGJ
Current price
$15.25 at 16:10 (09 November 2007)
Price at review
$5.81 at (20 September 2002)
All Prices are in AUD ($)
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