Aldi trumps Coles, Woolworths in meat price war, page-49

GT, CrazyP

this stock meets my "risk" criteria. what I find most interesting is looking at what Aldi has managed to achieve in other markets (UK / other parts of Europe).

so - it becomes a question of "how much" mk share the incumbents loose .........and after that (say Aldi gets to 20% national share with future roll out of their stores)..........then "what happens" to ebit margins .......

WOW was once a truly great stock .......double the margin of its major competitor - and this is what drove the high ROE ....which is what drove the share price.....

CML - now WES .......once a dog with flees ......the basics "fixed" and its an ok stock .....it has the exact same risks as WOW .....probably more so gives its premier relative PER .....

makes for interesting thinking !

mr Montgomery has posted a couple of intesting articles abt this issue

rgds
V_H