The bull thesis on Woolworths

Perpetual Equity Investment Company

Perpetual Asset Management (Australia)

Woolworths is "long on assets and short on market cap," says Vince Pezzullo, Portfolio Manager, Perpetual Equity Investment Company (ASX:PIC). PIC started accumulating shares late last year and picked up the buying following first half results. Pezzullo believes management have shifted their focus from sales growth to efficiency, with sales-per-square-meter now a key metric. Despite widespread investor concerns about losing market share to Aldi, Aldi recently lost East Coast market share for the first time. "Our view is that Coles is run particularly efficiently, if Woolworths is run particularly efficiently, which we think they're on that journey, it will be hard for Aldi to grow." With loss-making Masters now closing, and the possibility of a spin-off of ALH Pub Group the situation is also improving for Woolworths' non-core businesses. "We still like Woolies; we think it's a $30+ stock at some point." Watch the video below to hear Pezzullo present at Morgan’s on the 9th September 2016 his full views on Woolworths and how the business is changing.


MORE ON



1 topic

Perpetual Asset Management (Australia)

The Perpetual Equity Investment Company Limited is an ASX listed investment company offering investors access to a portfolio of predominantly high quality Australian and global listed securities, selected by Perpetual Investment Management Limited.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.