Woolworths Limited (ASX: WOW) shares have nosedived 13% in the past month.
Moreover, its fall from grace has been downright ugly.
In slightly under two years, Woolworths has lost one-third of its value, with Australia's largest and most profitable supermarket operator now worth just $30 billion.
In fact, Woolworths' shares, currently priced around $23.33, are worth seven cents less than the level they sunk to during the GFC (2008).
Clearly, to right the ship, something needs to be done at the highest levels of Woolworths' management.
Some analysts and investors have suggested quick fixes like asset sales and vicious cost-cutting.
However, despite its swooning share price, Woolworths' new Chairman, Gordon Cairns, is being urged to refrain from setting fire to shareholders' capital like the company did when it sold Dick Smith Holdings Ltd (ASX: DSH) in 2012.
Former famed Executive Chairman and shareholder, Paul Simons, told Fairfax that shareholders deserved answers for the sale, and the directors should be held accountable for failing to, "obtain an appropriate price".
He said Woolworths' struggling Big W and Masters Home Improvement business are, "worth persevering with".
"I do not believe Woolworths is a sinking ship, but it does need better management which, no doubt, the new chairman will attend to," Mr Simons added.
That'll be welcome news to long-time Woolworths shareholders, who've held on as the company's equity dwindled.
Buy, Hold or Sell
As a Woolworths shareholder I know it's hard to remain resolute when your shareholding plunges. Indeed, while I was drawn into Woolworths' shares because they appeared cheap using historical growth rates and on the basis of its portfolio of quality assets.
Selling assets may be a near-term fix; but if a new management team can generate outsized returns from those assets in coming years there could be value in Woolworths' shares today. However, that's a big 'if' — especially with Aldi, Costco and Coles knocking on the door — so investors shouldn't overlook the risks.
