WHL...will we see a bullish break following trade update

2019년 1월 8일

Woolworth's once a defensive play on the higher SA LSM, failed to hold there ground following the acquisition of David Jones....

Given the various write-downs on the David Jones division, not to mention the various changes to management, the share price declined and found support around the R 48.00 handle, and most recently, found some legs to set an area of consolidation around the R 52.00-56.00 levels.

Next week (14th Jan) the stock reports first half earnings with the market expectations c. R 2.30 (down -9.00% to the comparable previous period).
I'm of the view that anything remotely inline or better could possibly result in a break above the resistance recorded at R 58.50 level!
With FY earnings estimated at R 3.64 this puts the stock on a forward PE of 15x earnings ...

Comparing other Food and Apparel retailers
Not really that expensive compared to a blend of MRP(clothing) trading at x21 and a SHP (food) trading at x19.

2019년 1월 16일

노트

Re-iterate the view , still waiting for these earnings to finally come out.
Expectation is for tomorrow