Wake up call PT=$20, page-12

Well, since Banducci took over on 26 February, the share price is the same while Wesfarmers has increased 70%. But reversing the business towards making a profit is like turning around the Queen Mary, only much slower and more difficult.

To have come out with a plan that the market seems to think is OK in only 6 months isn't a bad effort in my view. And the downtrend on the weekly chart has stopped - it recently made a higher high. The "$30 by now comment" is nonsense.

However Aldi remains Woolies biggest problem for a share price recovery. If Woolies doesn't create a new division of Aldi-style stores and take Aldi head on at their own game in a war, then Banducci better have something very special still up his sleeve for the company to grow as quickly as the average shareholder would seem to want these days.


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