Tuesday, January 09, 2007

First Petrol .... Now Credit

There are reports that Woolworths Ltd (ASX:WOW) is finalising a payment processing system for its planned credit card. Woolworths is reportedly working with a number of banking groups and financiers to develop its financial services strategy. There is speculation that its new system is years ahead of rival Coles in terms of supply chain and logistics technology. A Woolworths-branded credit card will allow the retailing giant to join the competition between non-banking financial groups for a slice of Australia's $A33 billion credit card market.

Woolworths management have shown time and time again that they can come up with good ideas and get into profitable businesses that compliment the grocery business. Getting in on the credit card market should boost the returns for the company and provide another avenue of growth. While it is a bit overpriced at the moment this is one stock which would be a good buy
at the right price.

Good Luck Investing.

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