WEB - Web Travel Group

[Eager]

Half year results were released today with earnings, NPAT and dividends all up by approx 20%. A good result.

http://imagesignal.comsec.com.au/asxdata/20120208/pdf/01266673.pdf

I hold WEB.

 

[Bazmate]

Pretty happy with my little parcel too. Share buy backs, nice upgrade, steady dividend.... Big spike in share price.
Now trying to decide if it will keep going or crump

 

[skc]

Either there's a takeover rumour or a tipsheet pick, or there's a work experience student in charge of the buyback today. Up 7% on a bad day for the market. Volume is high for the company but still not that great in absolute terms.

I find it difficult to believe that a buyback at current prices (PE >20) is good for EPS.

Then again I've been wrong about WEB since $2.5...

 

[McLovin]

Either there's a takeover rumour or a tipsheet pick, or there's a work experience student in charge of the buyback today. Up 7% on a bad day for the market. Volume is high for the company but still not that great in absolute terms.

I find it difficult to believe that a buyback at current prices (PE >20) is good for EPS.

Then again I've been wrong about WEB since $2.5...

I don't get WEB at all. Their website is so bad, I have no idea how they make money. You can't even edit your search criteria (change dates etc) without starting again from scratch.

 

[Gringotts Bank]

I'm liking WEB for a trade here at 3.48.

Successfully making news highs, consistently over the last few months.

 

[McLovin]

I don't get WEB at all. Their website is so bad, I have no idea how they make money. You can't even edit your search criteria (change dates etc) without starting again from scratch.

I had to book a one way ticket to London yesterday. Being in a bit of a rush at the time, I only looked at my usual bestflights.com.au, expedia and WBB. For some reason, neither BF nor Expedia were showing an Asiana flight that was ~$3500 one way in business class, but WBB was. I had originally intended a Qantas/Finnair ticket that was about $4400, so was pleasantly surprised maybe WBB isn't so bad after all.

I will say their fees are a little steep. $30 processing fee + $20 "booking price guarantee". If I hadn't have been in a rush I could have probably just rung the airline and avoided all those fees.

 

[DocK]

Can someone enlighten me a bit re capital raisings? I owned both Oceanic Gold (OGC) and Webjet when they went into trading halts due to capital raisings - both at roughly the same discount to last closing price. Upon resuming trade OGC fell considerably, yet WEB opened higher. I expected webjet's opening price to be lower after the halt due to dilution etc. Is the difference that OGC raised capital only through institutions to reduce debt, but Webjet is offering a SPP to private shareholders and is making an acquisition that the market seems to approve of?

 

[peter2]

P.S. Bought some WEB this morning. Let's see if some of the enthusiasm brushes off.

Profitable comment by skc the day the takeover news for WTF was announced.

Nice one.

 

[leyy]

Some good value in WEB

Good up day today with no announcement on good volume.

No debt, decent dividend yield.

 

[McLovin]

Some good value in WEB

Good up day today with no announcement on good volume.

No debt, decent dividend yield.

They're fighting a losing battle, IMO.

That dividend might be good now, but WEB has some pretty stiff competition.

 

[skc]

Some good value in WEB

Good up day today with no announcement on good volume.

No debt, decent dividend yield.

There was an announcement the day before yesterday on acquisition of a hotel booking group in Europe. The next day quite a few brokers gave it the thumbs up, and hence the strong gain.

They're fighting a losing battle, IMO.

That dividend might be good now, but WEB has some pretty stiff competition.

Yes but in the short term I think WEB will move primarily due to the WTF glow. I remember a long time ago, there was rumour that WTF and WEB should merge....

 

[clowboy]

WEB has risen quite decently since the HY results, which seemed to be quite ordinary?

Did I miss something somewhere?

 

[leyy]

WEB has risen quite decently since the HY results, which seemed to be quite ordinary?

Did I miss something somewhere?

Some good results from WEB this week. tracking very nicely it is at an all time high with no resistance.

the recent acquisition of lots of hotels (LOH) is paying off and is seeing tremendous growth 89.6% increase in revenue YOY 1H.

good growth in B2B and B2C business over 20% in all businesses. More importantly margins have not decreased significantly despite competitive trading environment down 0.1% only.

increased dividend. good cash at bank circa $70M to fund potential acquisitions.

The current environment is quite positive for tourism and hospitality. I think most will benefit with the current macroeconomic market low Australian dollar, low oil prices, low interest rates.

Hoping to see some positive results with QAN, FLT.


cheers
leyy

 

[leyy]

The market really liked the announcement for WEB taking over the Online Republic business. This has taken WEB to an all time high at over $7.00!!

I think this is an excellent acquisition for WEB to further strengthen their OTA presence in the digital market. Especially in areas they do not have presence in (Car rentals, Cruise bookings, Motorhome bookings etc). There will be synergies from both businesses in terms of distribution and cost savings and will certainly complement each other.

I am very impressed with the CEO John Guscic (they both have substantial share holdings along with other directors so they have some stake in it).

I will be taking up my offer with an additional 100%.

 

[piggybank]

Thanks Leyy for the update on Webjet. Here is the link to a presentation FY15 Full Year Results carried out by the company's Managing Director John Guscic, at the Credit Suisse Travel Conference.

http://www.stocknessmonster.com/news-item?S=WEB&E=ASX&N=450516

 

[leyy]

hi all,

need your thoughts on WEB.

It has cracked $8.00 for the first time and is at an all-time high with strong uptrend, the chart looks good.

After the new shares from both retail and institutional have landed in the market the price held even with the profit takers. After some short-term consolidation it still shows lots of buyers support.


Webjet is due to report on Thursday 18th. I am holding two large parcels both personal and SMSF with over a 300% CG so far. It is too much weight in my portfolio for my liking but i cannot see any compelling reasons to sell the stock.

I am not overly concerned as i dont think they will shock the market with any disappointing news but again its a lot of risk.

Has anyone been following? and what are your thoughts? i have a trailing stop loss on WEB right now.

Has anyone been in a similar position with another stock? and what did you do?


Cheers
leyy

 

[Triathlete]

hi all,

need your thoughts on WEB.

It has cracked $8.00 for the first time and is at an all-time high with strong uptrend, the chart looks good.

After the new shares from both retail and institutional have landed in the market the price held even with the profit takers. After some short-term consolidation it still shows lots of buyers support.


Webjet is due to report on Thursday 18th. I am holding two large parcels both personal and SMSF with over a 300% CG so far. It is too much weight in my portfolio for my liking but i cannot see any compelling reasons to sell the stock.

I am not overly concerned as i dont think they will shock the market with any disappointing news but again its a lot of risk.

Has anyone been following? and what are your thoughts? i have a trailing stop loss on WEB right now.

Has anyone been in a similar position with another stock? and what did you do?


Cheers
leyy

Well done with your investment..!!
Having a look at the valuation by Stock doctor they have the stock at $5.45 and a consensus value of $6.89 so slightly over valued based on their valuation.

Having a trailing stop is a good idea this way it can take you out if you get an unlikely pullback.

Presently on a value perspective it is overvalued but I would just keep riding the trend and since you have a trailing stop that should take you out on the pullback provided it does not gap through your stop.


Strategic Comment

Last Updated: 7 June 2016

WEB is a Star Growth Stock that suits growth investors looking for capital appreciation and who are prepared to pay a premium for a quality business . The company has a strong track record and we continue to believe that with strong organic growth the company will be able to meet our Star Growth Stock criteria into the future.

WEB is currently trading at a significant premium to its valuation on the back of a very strong run up in price. A current holding in the stock should be part of a well diversified portfolio should you be a growth focused investor. Existing investors should potentially rebalance their exposure when they next make a portfolio decision. The company's investment in the business to business space is set to bear fruit in the coming periods, giving further access to a high growth area. The business has announced that it intends to raises capital to finance an intended acquisition of Online Republic, a New Zealand based online business, for approximately A$79 million.

Following further analysis of the capital raising and acquisition numbers of Star Growth Stock Webjet Limited's (WEB*) Online Republic acquisition, they have remained a Star Growth Stock. Of the total capital being raised ($72 million) the retail equity component falls in FY17 and this currently should see the company remain as a Star Growth Stock in the immediate period. This of course assumes there are no surprises in the FY16 result and they perform relatively in line with our expectations .


Currently Lincoln indicators have a 14day free trial....www.lincolnindicators.com.au

 

[leyy]

Well done with your investment..!!
Having a look at the valuation by Stock doctor they have the stock at $5.45 and a consensus value of $6.89 so slightly over valued based on their valuation.

Having a trailing stop is a good idea this way it can take you out if you get an unlikely pullback.

Presently on a value perspective it is overvalued but I would just keep riding the trend and since you have a trailing stop that should take you out on the pullback provided it does not gap through your stop.


Strategic Comment

Last Updated: 7 June 2016

WEB is a Star Growth Stock that suits growth investors looking for capital appreciation and who are prepared to pay a premium for a quality business . The company has a strong track record and we continue to believe that with strong organic growth the company will be able to meet our Star Growth Stock criteria into the future.

WEB is currently trading at a significant premium to its valuation on the back of a very strong run up in price. A current holding in the stock should be part of a well diversified portfolio should you be a growth focused investor. Existing investors should potentially rebalance their exposure when they next make a portfolio decision. The company's investment in the business to business space is set to bear fruit in the coming periods, giving further access to a high growth area. The business has announced that it intends to raises capital to finance an intended acquisition of Online Republic, a New Zealand based online business, for approximately A$79 million.

Following further analysis of the capital raising and acquisition numbers of Star Growth Stock Webjet Limited's (WEB*) Online Republic acquisition, they have remained a Star Growth Stock. Of the total capital being raised ($72 million) the retail equity component falls in FY17 and this currently should see the company remain as a Star Growth Stock in the immediate period. This of course assumes there are no surprises in the FY16 result and they perform relatively in line with our expectations .


Currently Lincoln indicators have a 14day free trial....www.lincolnindicators.com.au

Appreciate the feedback and comments Triathelete.

I will monitor closely and i will look at increasing the trailing stop loss

cheers
leyy

 

[leyy]

An excellent result!

9.2% above guidance of $33.5M EBITDA

$36.6M EBITDA

Huge gap up 24% increase on open

Glad i didn't sell.

 

[peter2]

I'm continually amazed by the mentality of the market mob. Here's WEB, less than two months ago lauded for some great results (Aug 18), the mob bid the price higher with exuberance. Now after some panic selling in the US markets and the ASX the price of WEB is lower than before the good news announcement.