Hi Kiwi, I actually just closed my position In woolworths after...

Hi Kiwi,

I actually just closed my position In woolworths after buying it a few weeks ago, and there is a few points why.

Firstly, the masters debacle ; this has eaten up all of Woolworths profit, and a deal still hasn't been finalized to close each and every masters store (theres hundreds) within Australia. This is dragging SP down.

Secondly, As seen today, Wesfarmers (Coles/target) has released their results showing that their profits have increased by some 5% , and can easily take over Woolworths market share. on top of this, Aldi is expected to grow 90% in the next few years, and other companies like IGA are also increasing their market share. This is all happening whilst woolworths isn't even maintaining their market share, let alone growing.

Finally, the management of WOW is horrendous. the new CEO is not up for the task, and besides the new CEO and changing the labels on product, the company has not really Changed. In the past 3 years you can see the chart, it is in a downhill pattern, with a few deadcat bounces (which i learned happened last week). this share will go to 20$ and lower IMO before anything happens, and i can imagine the results next week will be horrific.

IMO Woolworths is going to crash. i was a firm believer of Woolworths, but it is clear that the market does not like woolies. In the past 3 days, the market has been positive with 80%+ of the stocks going up in the ASX200. Woolies however managed to fall every day this week, and will fall tomorrow much more.

DYOR