Fidante’s Post

Why is Merlon Capital holding Coles and Woolworths together for the first time in 14 years? Australia’s supermarket titans have been navigating wage inflation, regulatory scrutiny, and evolving market dynamics. Yet, Julian McCormack of Merlon Capital sees a rare value opportunity — and he’s also got a surprising high-conviction pick. Read the full article to discover more: https://lnkd.in/gBnkqzP3

In the competitive landscape of the ASX 200 supermarket sector, investors cast a discerning eye on two major players: Woolworths and Coles. 🛒 With a deep dive into share valuations, we see Woolworths trading at a notable P/E ratio amid recent earnings disruptions, while Coles presents impressive quarterly sales growth with a more standard P/E ratio. 📊 💡#InvestmentInsights: Coles may be tipping the scales with a dividend yield of 4.05% against Woolworths' 3.41%, potentially marking it as the favored choice for income-seekers. Yet, with Woolworths' solid market presence, the decision is anything but straightforward. As we assess crucial metrics and market performance trends, the question arises: does Coles' current growth indicate future market dominance, or will Woolworths’ longstanding position reign supreme? Savvy investors are advised to keep a watchful eye as upcoming financial disclosures could be game-changing. 🧐 For those weighing their options in the supermarket sector, the complete analysis awaits. 👇 Read the full article: https://lnkd.in/g7Wwh2Bg #ASX200 #SupermarketGiants #Woolworths #Coles #StockMarket #ShareValuation #DividendYield #MarketTrends #InvestorNews

Market watchers, take note! 📈 Woolworths Group Ltd's recent 20% plunge has many investors asking: is this the ideal time to buy? With $48 billion in sales despite a tough economic climate, Woolworths' financial performance still signals resilience. The company's P/E ratio is becoming more tempting, suggesting a potential value buy. For dividend hunters, projected EPS growth hints at juicy yields up to 5.7% by FY28, making a strong case for those with a long-term perspective 🚀. Despite recent headwinds, could Woolworths be the defensive play your portfolio needs? Weighing the prospects of strong earnings growth and attractive dividends, now might be the time for savvy investors to consider adding this blue-chip stock to their holdings at a discount. 💼📉 Read the full analysis and decide if you should act on this dip: https://lnkd.in/gDncbuHA #InvestmentStrategy #Woolworths #StockMarket #LongTermInvestment #DividendStocks #BlueChip #FinancialAnalysis

In a strategic move amid a challenging market, #WoolworthsGroup has sold a 5% stake in Endeavour Group for a handsome $468 million. 📈 This deal catapulted Woolworths' shares to $31.93, defying market trends and showcasing robust investor confidence. With a keen eye on capital allocation, Woolworths still holds onto a 4.1% stake in Endeavour, assuring a strategic relationship with the potential for future benefits. Shareholders can expect Woolworths to channel the proceeds towards rewarding their investment, with further updates anticipated during the full-year results announcement in August. This reflects Woolworths' adeptness in leveraging market conditions to enhance shareholder value and optimize its investment portfolio. Stay tuned for how this disposal might drive Woolworths' growth strategies. #Investment #StockMarket #Woolworths #EndeavourGroup Dive deeper into the transaction here: https://lnkd.in/gBbqqymG

‘We think well-managed, large food retailers are better than average businesses,’ says Sean Peche, a top #valueinvestor who manages the Ranmore Global Equity fund, in which Carrefour is a top 10 holding. ‘They provide a vital service to society and generate attractive returns on capital and consistent cashflow because of their favourable working capital dynamics. Under the current management team, #Carrefour has doubled cash from operations over the past five years [and trades on] eight times expected earnings.’ Read more in Citywire Americas below Ranmore Fund Management Ltd https://lnkd.in/djM7rzp2

Greencore Group’s shares soared to their highest level since the outbreak of the Covid-19 in early trading on Tuesday as the marker of sandwiches and ready meals for Aldi to Marks and Spencer said its 2024 earnings estimates would beat analysts’ expectations for a third time.

Greencore Group’s shares soared to their highest level since the outbreak of the Covid-19 in early trading on Tuesday as the marker of sandwiches and ready meals for Aldi to Marks and Spencer said its 2024 earnings estimates would beat analysts’ expectations for a third time.

Australian grocer Coles Group reported on Tuesday a 3.6% slide in half-year profit as stock losses and waste hit margins, but the result beat expectations and sent shares on track for their best session in nearly four years. The company's net profit after tax from continuing operations was A$594 million for the six months ended Dec. 31, compared with A$616 million a year earlier, but beat a Jefferies estimate of A$557 million and a Jarden forecast of A$547 million. Shares of Australia's second-biggest supermarket chain were trading 6.7% higher at A$16.94 as at 0015 GMT, after jumping as much as 7.1% earlier, posting their biggest intraday gain since March 2020 and hitting their highest level since August 2023. My report for Reuters https://lnkd.in/g_qhHvjF.

This is just as much about a shelf-space grab as acquiring brands that are "strategic". The more pricing power and grocery shelf space a company can demand through their brand portfolio, the easier it is to choke out smaller competitors and start-ups looking to break into retail outlets. This will not be a good deal for consumers and even worse for competing brands looking for grocery pull through to drive sales.

Investors Alert: 📈📉 Woolworths Group Ltd's share price has nosedived to $32.92, marking a 17.8% drop since last year. This prompts a critical question for shareholders: is it time to 'buy the dip' or steer clear below the $33 mark? 💰 The recent earnings report showed a modest 1.5% growth in food sales, signaling a potential market share loss to rivals. Despite this, Woolworths announced a marginal increase in their interim dividend, up to 47 cents per share. Adding to the tumult was the unexpected exit of CEO Bradford Banducci, coinciding with the uneasy earnings report and possibly shaking investor confidence. 🔍 Analysts are split—some see the dip as a buying opportunity expecting a bounce-back, while others advise selling to lock in any remaining gains. As you contemplate your next move, consider Woolworths's resilience as a blue-chip stock against the immediate performance challenges. Your investment strategy and trust in Woolworths's ability to weather these headwinds will be your guiding stars. 🌟 Read the full analysis for a more informed investment decision: https://lnkd.in/gzVcDd_h #Investing #Woolworths #StockMarket #Dividends #CEODeparture #FinancialAnalysis #BlueChipStocks