Switzer Super Report director Paul Rickard likes Woolworths (WOW) and is looking to buy in dips. “I feel it is a really low risk investment – almost an annuity style investment – yielding around 4.1% per annum fully franked. On a relative pricing basis, I prefer WOW to Wesfarmers, and sense the sales momentum in the “supermarket wars” is shifting back to WOW.
Speaking last week on the Sky News Switzer TV show, David Buckland from Montgomery Investments also liked Woolworths. “We think the intrinsic value is about 10% higher than the current share price,” he said.
Commonwealth Bank (CBA)
The bank is due to report on Wed 12th Feb. Sentiment has turned a little negative on the banks but Rickard says don’t be surprised if this turns around following a strong report.