Tagliaferro sizing up Woolworths

Anton Tagliaferro of Investors Mutual says the “jury’s out” on Woolworths. “We’re going to go and see them shortly to try and get a handle on it. At the end of the day Woolworths is being priced as though supermarkets will never turn around, as if Masters will never make a profit and as if Big W will never turn around. Now, look it’s possible that will happen and every broker note I read says that’s what’s going to happen so that’s being priced into the stock. The truth is it’s not going to be easy to turn supermarkets around. Masters is some way off making a profit but it’s not impossible for those things to happen – so we’re doing a lot of work. The question is can you see in the foreseeable future a quarter or two where Woolworths sales will be higher than Coles? Because if that happens then the whole sentiment towards Woolworths will change.”