Source: Yahoo Finance
And here's the same chart of Woolworths (WOW) going back four years.
Source: Yahoo Finance
From 2012 to 2014 the graphs are remarkably similar. From April 2012 to April 2013 they both increase their share price by roughly 50%. Not bad for a one year return.
For the next year and a half (April 2013 to October 2014) they go sideways which is not unexpected given the rapid rise they had.
October 2014 is where the two charts start to diverge. It would appear the market was getting nervous with Woolworths (WOW) several months before the board did. Former chairman Ralph Waters admitted earlier in the year that the board was not fully aware of the extent of the downturn in sales in December and January. The board thought sales were "a bit soft"
The market was seeing something however as WOW lost over 10% of its value this time last year where as WES was still holding steady.
And so the plunge has continued for WOW this year with its share price returning to 2012 levels.
WES has largely held up however its share price has begun slipping under $40 in the second half of this year. It has previously traded within a range of $40 to $45 since July 2013. Could the market be getting a bit nervous about WES as it did with WOW this time last year?
No comments:
Post a Comment