dead cat bounce, page-4

re: shareholder discount card Arthur,

Coles Myer has actually done very well the past 3 years - or 6 reporting periods - margins across the business up 50% has increased earnings.
Still not up there with WOW - but it has been quite an improvement until this mornings announcementon sales.
The actually report itself will be interesting - looks like the economy is slowing and Myer stores might be a drag on them?

I see the money move across to WOW early today - I wouldn't be getting too excited about the WOW prospects - in the last report their operating margin declined for only the second time in at least 6 years - minor it was. However the thing that has me cautious on WOW is that return on assets declined about 25% on my calculations - and gearing appeared to go up (debt/equity) to a level that I don't like -although it did this in 2001 when they expanded and they turned that around - so maybe their financial muscle will do it again. However I am more cautious on WOW at the minute than CML and looking very much forward to their results as a guide to the retail sector in general.