Woolworths
Recommendation
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Indepth analysis of ASX listed shares
- BUY, Hold and Sell Recommendations
- Ideas Lab
- Special Reports
- Alan Kohler’s Weekend Briefing
- Interviews with CEO’s & top influencers
- Money Cafe and Talking Finance
- Super Advice and Q&A with Ask Alan
Woolworths is hoping for an Aerogard-led recovery next year, after poor summer weather led to weak sales of ice creams, soft drinks and insecticides. But it’s ongoing fresh produce price deflation that’s the main problem, with the company reporting zero same-store sales growth in its food and liquor business for the third quarter.
That compares with 1.9% in the first quarter and 1.1% in the second. Coles will also show weakening growth when it releases its sales results soon, although it should still outperform its larger rival.
| The recommended 5% portfolio limit reflects the company’s current valuation. But if you’ve been a shareholder for many years or bought shares at lower prices, then you might be comfortable with a higher portfolio limit given Woolworths’ competitive advantages and impressive track record. |
None of this is a big surprise, and produce price deflation will prove temporary. After all, with bananas now around $2.00-$3.00 a kilo, down from $15.00 after Cyclone Yasi last year, they’re unlikely to go much lower.
But unless same-store sales growth resumes over the next year, don’t expect much profit growth from Woolworths in 2013. Masters will continue to be a drag on profitability next year too, although changes to the Victorian gaming market should provide some upside for Woolworths' hotels. The share price is up slightly since Woolworths’ action-packed result from 5 Mar 12 (Long Term Buy – $25.39) and the stock remains a LONG TERM BUY.
Note: The model Growth and Income portfolios own shares in Woolworths.
Recommendation
Call 1300 880 160
Start a chat
Schedule a call
