Aldi marketing, page-58

AHS,

you may wish to run a couple of very simple models for WOW, and assume:

1. 6-6.5% EBIT margins
2. 3.5-4% EBIT margins
3. 2-3% EBIT margins ......

you may then "question" the "value" that discounting brings to the table ..........

I did the exercise for entertainment value, and used same FPO / capital structure / discount rate and growth rate.....

I got respectively
$35 +/-
$22 +/-
$12 +/-

giving away some fruit / cutting prices to win back customers - ARE NOT THE PROBLEM(s) FACING THIS COMPANYT !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

until management are able to recognise and then address this problem .......then I feel for shareholders .........

what I find sad - is there is "SO MUCH" that could be SO EASILY done !!!!!!!!!!!!!!!!!!!!

rgds
V_H