AFF Member Stock Discussion

[Freq Flier 2013]

Will be interesting to see bhp open tomorrow due to the china pause announcement. Good buying?

 

[cove]

Haven’t done much good in owning BHP so we went elsewhere.
Last night for us we took up some Saturn shares at 58 cents as gold shares are going up mostly.

 

[prozac]

Joke announcement ME supermarket Lulu will open in Australia by exclusive invitation. Lulu have 250 stores worldwide, all of them in the ME. Coles and WOW have 850 and 1,130 respectively. Where they don't have stores they have their foot firmly on any potential site to disuade competition. This is what German global supermarket sensation LIDL discovered when they tried to open 5-6yrs ago. Lidl opened an office employed staff, even sending staff to Germany for training. In the end they pulled the pin. Lidl have around 12,000 stores globally, with 3,250 in Germany and next largest market France with around 1,600 stores. If Lidl couldn't break into the Aussie market there is little chance Lulu can. With smaller scale it might achieve a couple of stores but unlikely to ever be competition for existing players.

 

[prozac]

Have watched DRO and CBO for more than a year. Well @prozac we too have zero Droneshield and Cobram Estate shares. Both ran away.

DRO up another 15% today to $5.32, up from $3.04 when I initially mentioned it 2 weeks ago. Nice profits if you grabbed some. Not one to jump into at this level.

 

[Quickstatus]

Lidl couldn't break into the Aussie market there is little chance Lulu can

Well Aldi did (Lidl's competitor in Germany). Though it occupies a very small segment of the market

LuLu need to be big and not offer a restricted product offering in order to compete

 

[Mr_Orange]

LuLu need to be big and not offer a restricted product offering in order to compete

Or at least a compelling point of difference to the duopoly. Harris Farm Markets is surviving, well thriving actually, but they target a different demographic to Coles and Woolies.

 

[Quickstatus]

Harris Farm Markets is surviving, well thriving actually, but they target a different demographic to Coles and Woolies.

A lot of C/W shoppers only get their F&V from Independents like HF including us. Meats from Independent butcher. C/W only for dairy/bread/frozen and other non perisherables

 

[prozac]

Well Aldi did (Lidl's competitor). Though it occupies a very small segment of the market

Well Aldi did (Lidl's competitor in Germany) though it occupies a very small segment of the market

Aldi have around 600 stores against Coles 850 stores. Aldi entered the Australian market around 25yrs ago when there were fewer obstacles to entry. They also paid 3rd parties well (six figures) at the time for introductions to new sites. Coles and WOW have made significant efforts since to tie up potential property (land bank) that could be used by a competitor (each other). This is why Lidl left and why Lulu will unlikely succeed or even try.
The announcement was all smoke and mirrors, showboating if you like, something that will likely never happen and when it doesn't they can say we gave them every opportunity, we tried to break the duopoly. Maybe I am too cynical?

 

[Brissy1]

Or at least a compelling point of difference to the duopoly. Harris Farm Markets is surviving, well thriving actually, but they target a different demographic to Coles and Woolies.

I'm at Harris farm every week, unfortunately can't buy shares in them.

 

[burmans]

A lot of C/W shoppers only get their F&V from Independents like HF including us. Meats from Independent butcher. C/W only for dairy/bread/frozen and other non perisherables

Agree on this totally, much better quality F&V from Harris Farm (and doesn’t go off as fast), and my local(s) HF also have good quality meat at competitive prices.

 

[Gladstone Tim]

Any ideas why Flight Centre (FLT) seem to have dropped and stayed down?

 

[cove]

A really good question @Gladstone Tim. Both FLT and WEB have been going down. I don’t know why.

 

[prozac]

A really good question @Gladstone Tim. Both FLT and WEB have been going down. I don’t know why.

Have been watching WEB and read there could be good upside. Is there really money in booking beds?

 

[cove]

I hope WEB turns around from their year low @prozac.