Endeavour Group Limited

ASX:EDV

Endeavour Group Limited

ASX:EDV
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$4.21 (+0.5%)
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#296
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Forum Topics EDV EDV Cost of EDV shares?
shadow
Added 3 years ago

Hi fellow investors,

Trying to work out the cost base for potential CGT purposes. According to the ATO ruling:

  • 85.81% of the total of the cost bases of your Woolworths shares just before the demerger to your Woolworths shares, and
  • 14.19% of the total of the cost bases of your Woolworths shares just before the demerger to your corresponding Endeavour shares.


To confirm for the EDV component only - this is the calculated as 14.19% of pre-demerger WOW share cost base?

And, if I sold WOW shares after the demerger, the cost base for WOW should be recalculated to 85.81% of pre-demerger WOW cost base?


Appreciate this is not a financial advice / tax advice forumn, but just wanted to wrap my head around the ATO ruling.


Link here: https://www.ato.gov.au/law/view/view.htm?docid="CLR/CR202150/NAT/ATO/00001"

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shadow
Added 3 years ago

@jwrostango27 - you're a legend! Perfect as I do use sharesight.

Thank you!


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shadow
Added 3 years ago

There are many things I love about this stock - the beauty of EDV is that it has both sides of the booze trade, and each side almost acts as a informal "hedge":

  • If there are lockdowns in place and the pubs aren't allowed to open, people consume alcohol via purchases from the retail shops
  • Reopening increases patronage to pubs and hence people don't have to buy as much alcohol from retail shops consume at home anymore.


Revenue split is not 50-50 (figures from F21 annual report), so it's not a real hedge:

  • Retail EBIT: $669m, Retail Gross Margin: 24.2%
  • Hotels EBIT: $61m, Hotel Gross Margin: 85%


That being said I'm incredibly impressed by EDV's efforts to enhance their online services (Jimmy Brings, Dan Murphys & BWS click+Collect functionality is absolutely seamless and I'm a raving fan). I'm definitely keeping this on my watchlist. My straw was more of a short term bear case...just waiting to jump back in :) I think there are other stocks in the meantime with greater upside potential at this stage (AMP, anyone?).

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