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Online Share Trading

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WHL or SHP

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Plonky
Super Contributor
Greetings...I am keen to put 100k into ONE retailer...Either Woolies or Shoprite...which one ?
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16 REPLIES 16
Preston
Super Contributor
Well Rams says he is going to short WHL and the more it climb above R77 . the more he will short. So i guess i am taking his money today. WAIT for it, he will now focus on STOPLOSS.
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Preston
Super Contributor
Re:Re:Re:Re:Re:Re:Re:Re:WHL by Rams on 24 Oct 16:53 i agree,i am usually an investor at the 200EMA...now i am working on a sysytem where i can be a trader at the 200EMA, so i can be hold for a long time,,,for WHL, at around 68 odd...at 78(major resisistance, may get a retrace, add more...but it just a sysytem and everyone has one(i tried some humour(blanket story) but i got back sarcasm)....
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Plonky
Super Contributor
Thanks Preston...I prefer to go for shares with reasonable dividends. WHL has a higher div. yield than SHP, so I am leaning towards WHL.
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mullet_fish
Regular Contributor
split it 50/50....too hard to call...look again in 10 years time...don't worry about checking in between.......
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Rams
Super Contributor
Plonky, as reposted by Preston, if you trading, above 78. If you investing, then around 68, or higher if it reaches 200 EMA. A good strategy is 70 000 in MPC,and 30 000 in SHP,,,clothing and food. If you trading , as warned by Preston, Stop loss always....read also my post on the blankets ...with stop loss , you can always get it at a better price....oh, I don't own WHL.... I like their food , and the blankets are useful in this rainy weather....
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Not applicable
well, let see now. WHL has a PE of 22, pays a 2,5% dividend, has an operating margin of 10%, serves high margin products to the upper LSM range and has consistently outperformed SHP for the last 4 years. SHP has a PE of 26, a div yield of 1,5% - has an operating margin of 4%, serves low margin FMCG to the lower LSM range, is in a mexican standoff with the Zambian government regarding its entire operation there - and has pegged its growth strategy on similar volatile emerging markets. Eish what am I saying - Shoprite all the way!
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SimonPB
Valued Contributor
SHP group op margin was 5.8% at last results
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Rams
Super Contributor
and he has the sectors mixed up...
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Werner_1
Super Contributor
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Not applicable
OK, a couple of percentage points out - but still significantly lower than WHL and my point stands . And RAMS, if you want to be argumentative - argue about something relevant. If you want to split hairs about sub-sectors of the retail industry then you are clearly having a slow day whaching price ticks on your computer screen
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Rams
Super Contributor
they retail, but SHP compares with the likes of PIK and Spar...WHL compares with the likes of MPC and Massmart...big diffrence if you comparing the fundamentals...hence i suggested the 100k into retail but MPC(70k) and SHP(30k)....diversification between apparel and food
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Werner_1
Super Contributor
WHL is my favorite retailer! at the right price i would buy it.
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Rams
Super Contributor
well, why not MPC then, it has , PE of 18, operating margin of 15%, and Div yield of 2.6%....i know the question was SHP and WHL..like roads, roads are roads, but roads in JHB different from roads in Malawi?
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Not applicable
Curious as to how you are going to rationalize SHP (food, furniture, drugs, booze, fried chicken) compares to spar (food and building supplies) and PIK (food, with a dabbling in drugs and clothes) but doesn't compare to WHL (food and clothes), MPC (clothes only - not so much as a breadcrumb in any of their businesses), Massmart (building materials, wholesale everything - including food). Wanna have a crack at explaining your point?
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Rams
Super Contributor
yes, good point...SHP, is 84% food (and groceries...supermarkets) and WHL is 88% non food/groceries, and MPC is 85% clothing(apparel)...SHP is one big food/grocery store....WHL has the food store somehere at the back cramped into a small isle..even the dedicated food store is smaller than SHP stores
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Preston
Super Contributor
Ramsie, i am battling to understand your initial argument?
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