Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Invest in Sydney/Brisbane property markets, or for media/public speaking requests, email pete@allenwargent.com

Wednesday, 9 April 2014

David Jones +25% on takeover bid

Challenging times

It's been a rough few years for retailer David Jones.

First there was the brouhaha following some inappropriate events at Randwick Racecourse which led to the departure of their Chief Exec, which need not be dragged up again.

More recently I vented my spleen about some outrageous share trading - which wasn't insider trading, of course - just an honest mistake. 

ASIC showed itself to be a shade toothless on that occasion and let it slide (saying it was "very difficult to prove" - LOL), although the Board Members quietly resigned in the end.

Takeover bid

Better news today for DJS, however, as Woolworths South Africa offered a takeover bid valued at $2.148 billion.

That's worth $4.00 per share which is a 25.4% premium than to the closing share price yesterday of $3.19.

Amazingly enough, DJS hasn't traded at $4.00 since all the way back in July 2011.

It's always had the appearance of a solid business but retailers did struggle in the aftermath of the financial crisis as Aussies tightened their purse strings and household savings rates jumped.

Moreover, some of the department stores have shot themselves in the foot a little by failing to embrace online retailing as wholeheartedly as they might/should have done.

David Jones had previously been in discussions with Myer (MYR) about a potential $3 billion merger, which will now doubtless be rescinded by Myer.

DJS shares are now up by around 30% in 2014 and MYR's shares got a neat little boost on the news too, which will drive the Aussie share market higher today.

Members of David Jones and Woolies appear to be widely expected to wave the deal through at a shareholder vote in June.