WOOLIES’ DAVID JONES ACQUISITION SERVING IT WELL
As a shareholder in Woolworths* the David Jones deal looked great to me, but I was concerned as these large deals always take longer to bed down than management suggests. While Woolies was saying it would take three years, I was worried that it may take longer. I gave the retailer the benefit of the doubt by taking up my rights when it issued shares to find the transaction, but haven’t been buying more. Yet management returned great results from both the local operation and from David Jones, indicating that it really is serious about making this work smoothly. The shares remain expensive, but if they come down to my entry level, I will be a buyer, having removed my non-buying status on concerns of the deal. making contracts. Time will tell if the smaller order books are healthier, but regardless, I continue to stay away from the sector as it remains tough no matter what space or geography the companies operate in.