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The pick of the retail sector

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Makes for some interesting decisions here. Woolies sitting on a PE of around 13 right now, which is about as low as a retailer can go (unless they post a loss, of course). SHP still sitting in the 20's, MPC around 14, etc ... So the question is - what is the best strategy going forward. With SHP, you are banking on more of the same. With MPC, you are banking on them turning around the low cost - high volume markets of Africa. With WHL, you are banking on them turning around the high income - theoretically high margin markets of SA and Australia. SA carrying them still, and they are still struggling to grow margin in Australia. Then there is the question of debt. Woolies as a D/E ratio of 1. Pretty high - but once knocked off - they should be in a good position. Worth a punt, I think
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3 REPLIES 3
Russ
Super Contributor
WHL has good support at R63.Let's hope she turns from here.
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partridge
Super Contributor
This is still expensive - if you want to fall about laughing then go and look at the 2012 and 2015 research reports - with diametrically opposed views based on data indicating the opposite in each case I think somewhere in the 50's is a point where one might look up from your screen. Now its suffereing from the effects of being supported by people who want it to suceed - which is sadly , not enough to pass muster in my book anyway.
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partridge
Super Contributor
Tradig update in January will surely be key? Soooo, unless you see people qeueing around the block at christmas I would not touch this lot until I think it will be a very flat report - AT BEST..
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