Had a look at the Woolworths stock a couple of days ago and wondering if it was undervalued.
Not quite yet. It is making it's cost of capital, unlike Westfarmers (one to avoid if my calculations are correct), but I have a price target of 29.50 on it. At the Woolworths current price of 35.00 its still a little over valued for mine. But one to keep an eye on if the correction comes.
Tuesday, September 16, 2014
Friday, September 12, 2014
MYER in trouble....doesn't look great
Been running my eye over MYER after the full year financial report yesterday...doesn't look good.
Even with the reduced dividend, it is pretty much paying out it's entire profit, so growth without debt and equity doesn't look good.
And when you look at the debt, it's a shocker, especially when you include the non cancellable Operating leases. I don't see them being able to borrow much more than they can at the moment...so that means equity injections, all of which will be shocking for the share price.
In fact, by my calculations, I have a price target over the next 12 months of only 95 cents, way below the current price of $2.
Good candidate for shorting though (though before you do this, please see your financial advisor)
Even with the reduced dividend, it is pretty much paying out it's entire profit, so growth without debt and equity doesn't look good.
And when you look at the debt, it's a shocker, especially when you include the non cancellable Operating leases. I don't see them being able to borrow much more than they can at the moment...so that means equity injections, all of which will be shocking for the share price.
In fact, by my calculations, I have a price target over the next 12 months of only 95 cents, way below the current price of $2.
Good candidate for shorting though (though before you do this, please see your financial advisor)
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