Preview

Factors Influencing the Share Price Fluctuations of Woolworths Holdings Limited over the Period 01-Feb-2009 to 28-Feb-2011

Powerful Essays
Open Document
Open Document
2964 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Factors Influencing the Share Price Fluctuations of Woolworths Holdings Limited over the Period 01-Feb-2009 to 28-Feb-2011
Introduction
This report is meant to research the share price fluctuations of a Stock listed company in a local or international stock market. It is meant to study the various factors that influence its share price fluctuations in the short term and the growth-related or contraction-related trends over the long term. Woolworths Holdings Limited (WHL) is the company chosen and the period of the research study is February 2009 – February 2011.
In this report, I will borrow from the Fundamental Analysis definition and address the question by looking at:
• The WHL Company Profile and its products
• WHL’s Share Price Analysis
• A conclusion
As employed in the end Fundamental Analysis definition, I will attempt to show value on whether a WHL share is a good or a bad share so as to promote a decision to the investor to Buy, Sell or Hold a WHL share.

The Company and its products
According to the Woolworths website company overview, Woolworths is a company that was founded in 1931 by Max Sonnenberg. It officially started trading operations on the 31 October of the same year. The company website continued to say that Sonnenberg believed that success lay in providing customers with superior quality merchandise at reasonable price. This was the tenet upon which the Woolworths brand was built and it rings true to many South African consumers today.
The company website further cites that Woolworths Holdings Limited is an investment holding company and one of the Top 100 companies listed on the Johannesburg Stock Exchange. Its primary business is to provide retail and financial service to middle and upper income groups mainly in South Africa but also in Africa, Australia and New Zealand. Its subsidiaries are divided in the following manner:
Woolworths (Proprietary) Limited – a respected chain of 400 retail stores, including franchise stores, with a product offering of selected quality clothing, food, homeware and beauty services. According to the Mail & Guardian

You May Also Find These Documents Helpful

  • Good Essays

    Finc2011 Major Assignment

    • 1909 Words
    • 8 Pages

    Woolworths Limited (WOW), which is one of the listed companies in Australian Security Exchange (ASX) (ASX 200), is the largest supermarket in Australia (Kruger 2013), it specializes in the groceries, food and retailing (WOOLWORTHS LIMITED (WOW) 2013). The aim of this report is to estimate and determine the dividend growth rate, stock return and current share price of Woolworths. Methods used for the estimation include dividend growth model, Capital Asset Pricing Model (CAPM) and Gordon’s Growth Model. The results of the estimation indicate that the dividend payments will continuous increasing in the future, the return on the company’s assets is reasonable and its share price is expected to rise.…

    • 1909 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    I will provide data and information regarding the Return on Equity (ROE), which shows growth of the stock. I will also provide a projected future growth rate of earnings, its rate of return and valuation techniques.…

    • 1517 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    nvq level 2

    • 5379 Words
    • 22 Pages

    A supermarket chain which sells food, clothing, toys and financial services such as Credit card and Insurance and travel money. It also has mobile phone network…

    • 5379 Words
    • 22 Pages
    Good Essays
  • Best Essays

    Kohls 2013 Annual Report

    • 2645 Words
    • 11 Pages

    The decision to buy, sell or hold Kohl’s stock is a difficult one. Their 2012 financial statements reflect a descending trend in cash, which may be a positive indication of the company reinvesting funds back into the company and distributing dividends to shareholders. However, their financial statements also reflect an increase in total liabilities, which may be a negative indication of more leverage being used to finance the company. The more leverage the company has the greater the financial risk. In the final analysis, investors should buy Kohl’s stock. Kohl’s stock is affordably priced and the company has extraordinary growth potential. Outlined below are the factors that were taken into consideration before deciding if this was a financially healthy company to invest in.…

    • 2645 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    Hr599 Benefits Project

    • 2527 Words
    • 11 Pages

    Wal-Mart was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Wal-Mart…

    • 2527 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    2431 Assignment2

    • 7980 Words
    • 49 Pages

    The diagram of BHP Return indicates the share preference of BHP share’s return in Australia market. During the time of Aug 07 to Jun 09 there was a high volatility period, the fluctuation of this share return was frequently. This may cause by bed economic environment and situation. Especially, there was a serious market crash happened on 17th Nov 2008 (-0.1705).…

    • 7980 Words
    • 49 Pages
    Good Essays
  • Powerful Essays

    Foot Locker

    • 1341 Words
    • 6 Pages

    The history of Foot Locker can be traced through that of Woolworth and the company’s founder, Frank Winfield Woolworth, who parlayed the idea of the five-and-ten cent store into an international retailing empire. On…

    • 1341 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Levels of Operation

    • 586 Words
    • 3 Pages

    Level of operations refers to the scale of food production and the amount of sophistication of the technology used. The various levels of operation and mechanisation include household, small business, large company and multinational. Woolworths is a large company. A large company is characterised by a range of stores across Australia, large scale food production and selling, stores including industrial equipment, high turnover and a large number of employees.…

    • 586 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The first of many things that pondered me was how this huge corporation emerged. Well in the year 1969 a gentleman by the name of Sam Walton had opened several Wal-mart chains. Now this small chain of Wal-marts from 1969 has expanded globally to over eleven thousand stores around the…

    • 1729 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Woolworth (WOW) is an Australia corporation with more than 195,000 employers which operates business in grocery stores industry which was founded by Percy Christmas in 1924 (Woolworths, 2012). Its manages 3,000 stores which are located in New Zealand, Australia and India serving 28 million consumers for liquor, span food, petrol, home improvement, hotel and general merchandize (Woolworths, 2012).…

    • 1361 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Workplace Ethnography

    • 1790 Words
    • 6 Pages

    Woolworthslimited.com.au,. (2014). Quality Brands and Trusted Retailing - Woolworths Limited. Retrieved 14 April 2014, from http://www.woolworthslimited.com.au/…

    • 1790 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Woolworths Limitation

    • 1382 Words
    • 6 Pages

    Founded in 1924, Woolworths is one of the largest supermarkets in the global community. Woolworths states that it is a versatile place where goods are cheap for every man, woman and child. Besides the supermarket, Woolworths also owns 6 other brands, such as Big W which has a range of products; Dan Murphy’s which specializes liquid goods; ALH Group which manages the hotels. Only in 2012, Woolworths…

    • 1382 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Woolworths Strategy

    • 3378 Words
    • 14 Pages

    Shoebridge , N,. 2007 ‘Woolworths Select hits 1000 products.’ The Australian Financial Review. Page: 47…

    • 3378 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Viktoria Summer Asper Villa AB48884 Sainsbury’s History  …

    • 813 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    UBS Valuation Multiples Primer

    • 16485 Words
    • 115 Pages

    This is the first in a series of primers on fundamental valuation topics such as…

    • 16485 Words
    • 115 Pages
    Powerful Essays

Related Topics