Pinned straw:
$WES posted their FY results this morning.
I just wanted to call out the retail results. In the context of everything else we've seen sp far this reporting season for Australian retail, just look at those numbers for Bunnings, Kmart, and Officeworks. What a business...or group of businesses!
Kmart obviously a beneficiary of the value conscious retailer trading down. But it's more than that ... e.g.,members of my family get clothes there by choice over higher value brands.
Not Held :-(
@mikebrisy thanks for that ill have to have a closer look. those numbers are unbelievable. WES is almost a top-10 holding for me, but I rarely look at it. Target/Kmart I thought was a write-off years ago, Bunnings was always great. the job these guys have done on the Kmart group turnaround as it is known now is just extraordinary, an example of huge value creation. One i would not have forecast.
Wish I YOLOd my ALU into WES
Clearly not phased by the potential disruption of online platforms such as Amazon and Temu
Price has declined since the release. I think it has something to do with here about Bunnings:
All things being equal (no broker price targets etc...), I would be happy to buy at the historical 30x PE which is around 68 to 70
Also waiting for Covalent to switch from Lithium to Gold! Wouldn't make the ESG funds happy though. And I believe the Gold is not alot.
I'd love to own $WES. While I don't have my own independent valuation of it, it looks expensive on an historical basis.
Pre-pandemic, I think the P/E tended to be more around 20 or less, and you have to ignore retail P/E bumps during late-2020 to early-2022 because of the pandemic sugar-hit of people buying "Stuff".
There also seems to be a lot of future success in the SP today.
