Don't discount a takeover for Woolworths
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)
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