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