Wesfarmers

Strength through diversity is the catchcry for the Perth-based group, and the benefits of the conglomerate model are highlighted by strong earnings from coal offsetting tougher retail conditions. Booming coal prices have been a fillip for chief executive Richard Goyder as he wrestles with improving the Coles supermarket chain acquired last year in an $18 billion takeover. Most analysts have faith in Wesfarmers' ability to turn it around, but many said it would be a long and costly process. The recent $2.5 billion capital raising helped ease concerns about debt levels after the Coles purchase. The stock is up 16 per cent from its late January low of $32.50 but down 17 per cent from a record high of $45.73 touched a year ago.