There’s a real WOW factor in our super stock selections this week.
Two of our expert stock pickers have pinned Woolworths in their likes list, with a recent company update setting tongues wagging for a potential turnaround story.
“The bottom finally appears to have arrived for WOW,” Evan Lucas of IG Markets says. “The restructure announced should start to give the market some confidence that there is a sign the strategic vision implemented by the new management group may actually see WOW changing direction.”
Although the company looks to have many years of change ahead, Lucas says it now has a base to work from.
“This is a deep value play in my opinion.”
Woolworths’ shares are currently at levels around $23.50.
Source: Yahoo!7
In a statement to the ASX, Woolworths announced $959 million worth of restructuring costs to be recognised in their FY16 results.
“Today’s announcement demonstrates both the progress we are making and our absolute commitment to act quickly to rebuild the business by doing the right thing by our customers, shareholders, team and suppliers,” Woolworths CEO, Brad Banducci says.
Raymond Chan of Morgans also believes the company update reveals the management’s commitment to a sustainable turnaround plan.
However, personal care and hygiene company, Asaleo Care, is out of favour with Chan. He says last week’s profit downgrades led to further consensus downgrades. Asaleo shares are currently trading around $1.50.
Source: Yahoo!7
And although Lucas can’t see anything structurally wrong with gold stocks, he thinks they are fully valued at least in the short term and profit taking looks likely. “…This sector is likely to suffer from its recent successes,” he says.
Switzer Super Report expert Paul Rickard mentions two broad-based listed investment companies that have moved into a discount: Milton Corporation and Argo Investments.
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