Don't discount a takeover for Woolworths

Intelligent Investor

Independent Financial Research

Woolworths’ recent run of bad news is only going to worsen. Could the company be snatched away before you get the opportunity to buy? With Woolworths (ASX: WOW) reporting its 2015 results last Friday, the company continues to make news. Unfortunately it’s the wrong kind of news. A poor 2014 Christmas, lagging sales growth and losses blowing out at home improvement start-up Masters have been followed by the resignation of chief executive Grant O’Brien. A few weeks ago the head of the struggling Big W chain left after a staff complaint, then on Friday chairman Ralph Waters announced he was stepping down. Woolworths is effectively rudderless. There is little doubt that the new chief executive – when he or she is appointed – will come in with a mandate to slash profit margins. Woolworths reported earnings per share of $1.97 in 2014 and that will probably represent ‘peak profit’, at least for a few years (whether we’re at ‘peak beard’ is still uncertain). Read full article here: (VIEW LINK)


Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...


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