Forum Archive Index - August 2000

["Peter Maiden" <pmaiden@today.com.au>]

Best choice for 3 years IMHO would be WHS. Both for growth in share price as 
well as dividends.

A few weeks ago you might have read my note where I suggested that the price, 
even at $5.80, was way undervalued. 

A part of the reasoning was that the future growth is assured because of the 
result of the grest economic experiment in the last decade or so. - Read sandra 
Coneys column in todays Sunday Star Times to support this.

The poor getting poorer, the middle class getting poor etc. 

Recent sales data and releases suggest that people cannot even trade up to (or 
continue to saty with) the Farmers - Farmers/Deka sales down 7% while Warehouse 
up 10%. Get the picture.

Warehouse seems to have developed a model along the lines of the Home Depot in 
USA. Study that - growth by relentless beating up of suppliers, adding new 
ranges, expanding into pther activities (ie Warehouse now has chemist shops, 
what next), creating new floor space to get more sales etc.

Operating margins are world class. A great business model

Peter  

        


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