Was Friday a major low for Woolworths?
On Friday, after posting an almost $1bn after-tax loss for the half year, Woolworths (WOW) shares crashed over 6%, to fresh multi-year lows in early trade only to rally strongly and close up 1% for the day. This very strong turnaround on bad news is a classic scenario for a major bottom in a bear market; do Market Matters think WOW is now a buy? Two things are clear 1) WOW has experienced a bear market correction since 2014 with the stock falling almost 30% but trading conditions have deteriorated and their investment in Masters has been a disaster. 2) Technically WOW has now exceeded our bearish target published around 18 months ago of $22 and a ~$5 bounce towards $26 would not surprise. Read the full report (VIEW LINK)
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