Supermarkets' milch cow
A dollar for a litre of milk might attract shoppers into stores but it shouldn’t worry supermarket shareholders, especially not those of Woolies and Metcash.
Wesfarmers grabs the baton
With a resurgent Coles, Woolworths is on the back foot. But the market knows it, and that’s why Wesfarmers shares are the poorer investment.
Every reason for concern at Wesfarmers
Shareholders rely on management to tell the story straight. But unfortunately backward steps were evident in the Wesfarmers annual report and at its subsequent AGM.
Wesfarmers to win hardware battle
Woolworths thinks the hardware market is ripe for the picking. But there’s a big bad scarecrow in this orchard, and it goes by the name of Bunnings.
20 Aug 09 - Reporting wrap
A deluge of blue chip companies has reported today, and a couple of tiddlers.
Wesfarmers gets Coles format right
Wesfarmers has been trying new store formats in its Coles supermarket division. We recently visited the company’s seventh pilot store in Sydney’s Balgowlah and came away impressed.
Wesfarmers finds solace in stability
Following its capital raising, Wesfarmers’ debt is now under control. Better yet, there are early signs that Coles might not be the basket case many assumed.
Wesfarmers slashes its dividend
Eighteen months ago, we warned that: ‘Lower commodity prices, weaker economic conditions, and the high debt Wesfarmers will take on acquiring Coles are all big risks to Wesfarmers’ profitability.’ Now management has cut the dividend and has launched its second capital raising, there’s light at the end of the tunnel.
Wesfarmers crying out for cash
Cutting the dividend seems to be a last resort for many companies. But Wesfarmers needs cash, and slashing the dividend is really only the first step of several it should take.
Wesfarmers hauled over the Coles
Wesfarmers’ share price is finally starting to reflect the prospect of lower profits in several important divisions. But high debt levels and our concerns about top management prevent us from getting excited.
Wesfarmers makes its own luck
Following the acquisition of Coles, booming coal prices will provide cash flow at just the right time for Wesfarmers. But turning around the retailing giant will be a hard slog.
Wesfarmers sweetens Coles offer
Wesfarmers is playing hardball in its bid for Coles. Unfortunately for them, Coles shareholders don't have much to bargain with.
Wesfarmers reaches Coles checkout
With Wesfarmers the only bidder left in the queue at Coles, it has won the day. But debt of $11.5bn and strong competition from Woolworths won't make Richard Goyder's job an easy one.
The worst case for Wesfarmers?
For our ‘Risk’ issue, here we examine what Wesfarmers might look like if things turn nasty a few years hence.
Wesfarmers makes a play for Coles
It’s not often you see a $15bn company making a play for a $20bn one, but Wesfarmers is trying to muscle in on the Coles auction.
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