I have been pondering Coles for a while, wondering just what exactly is actually going on here.
And after a little help from the fundamental analysts on HC, and after seeing a bit of well placed negative press around, it has started to make some reasonable sense.
So i've started buying Coles (COL) in two super accounts (started last Friday @11.25) - disclaimer - I already held a couple of thousand shares which I received as part of the demerger.
There is not much technical data to consider, as they only demerged from WES last November, which makes it a bit more difficult to analyse.
However it appears to me this sharp dip lower may well have been engineered on announcement (to flush out some stock to accumulate), as the last three bars now look suspiciously like some decent buying has emerged.
My plan is to accumulate while price is down below 12.00 (even below 12.50 maybe), hopefully it stays down here for a brief period at least. And eventually build towards an overweight position. Then sell some to balance the holding a bit when price is (substantially ??) higher - in about 12 months time, give or take a few months, and finally retain a moderately sized position for income, if all continues to appear well.
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cheers