Woolworths shares can halve from its peak

Many investors think that you “can’t go wrong owning ‘blue chips'”.

The #Woolworths share price traded down to A$30.12 today.

5 months ago, I wrote this note implying that shares in the Australian & New Zealand (supermarket) retailer could see $30.00 before experiencing some sort of ‘exhaustion’.

If I was ever interested in buying shares in a retailer with a 2% net margin……today’s price is still not cheap enough.

Even though #Woolies (WOW.ASX) shares have recently declined 25%, I think a price of $24.60 is possible. That would represent a decline of a further 20% from today’s A$30.50 closing price.

May 2, 2024

by Rob Zdravevski

rob@karriasset.com.au