Sell Side View: Mathan Somasundaram, Quant Strategist at Baillieu Holst, says Woolworths is the most disruptive stock delivering in all market conditions
Sell Side View: Mathan Somasundaram, Quant Strategist at Baillieu Holst, says Woolworths is the most disruptive stock delivering in all market conditions. We have been a fan of WOW since they were $25 on the key thematics that they deliver consistent growth, substantial free cashflow, early investors in big data and willing to invest in long term growth plans that may not have been popular at that time. They have learnt from the positives and the negatives of Walmart growth story and have mapped an improved model forwards. They have already started to spread their wings into discretionary retail, hardware, financial services, take-away/prepared food, pet care and pharmaceuticals. Given their capacity to stay the path for the long term and data mining, we expect them to challenge and beat existing players on the basis that they know their clients better than the incumbents and also able to cross sell services.
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