Consumer Staples

In this week’s Weekly Insights: – Woolworths Comes Clean. Now What? – Reporting Season Special – Orica’s Glencore Concentration Problem…

Michael Gable of Fairmont Equities suggests Woolworths’ share price rout represents the last leg in a downside move.

Continued erosion in FY15 earnings; bright outlook for residential builders; digital, NBN benefits; slowing sales for supermarkets; downshift in Oz dollar; limited windfall from lower oil prices.

Australian retailers improve online presence; tobacco excise clouds grocery growth; challenges remain for key retailers; and petrol price fall positive but impact on sentiment limited.

Credit Suisse adds to top picks; TV advertising subdued while online continues to grow; Xmas trade better than expected; issues for some retail stocks; and A-REITs still attractive for Morgan Stanley.

The Chartist is bullish Wesfarmers although a little patience may be required.

With the transformation plan moving at a glacial pace brokers have pushed Metcash’s recovery further into the future.

Term deposits are less attractive; food inflation easing; Woolworths’ Masters dilemma; business sales; and ANZ’s FX strategy.

Nick Linton-Ffrost of Fifth Wave suggests a short-term trading idea in beaten-down Woolworths.

Trading for discretionary retailers has softened considerably since May and there are further headwinds on the horizon.