WEB - Webjet

**stevieb** · 02-08-2006, 09:19 PM

quote:Originally posted by major

It's common knowledge and good business practice that any internet business should be able to offer products cheaper than a bricks and mortar type business, yet in Webjet we have an internet business that is charging at least 10-15% more than the bricks and mortar airline businesses that Webjet sources all their product through???

Based on your 10-15% figure I think you must be assuming Webjet's business is mainly domestic but I have a hunch where they are getting business is international where %'s are much lower (i.e. it's stil $14 on maybe a $2000 flight) and there are more potential options for airlines and maybe users are less aware where to look for all the airlines websites. Wheras for domestic you just need to know 3.

Also think the mix and match option they have for NZ (fly out one airline and fly back with another) will be expanded shortly and would be attractive to many. No single airlin eoption offers this.

**stevieb** · 31-08-2006, 12:24 PM

Webjet keep on announcing record weeks and days of transactions, seems like someone likes their service!.

Acording to the presentation on boardroom radio most business is repeat businss or word of mouth.

**WASL** · 31-08-2006, 08:11 PM

Hi Stevieb,
I agree with you that it has public appeal - despite some on this site who poo-pah it. Following announcement was made to market/brokers yesterday (30/8). I have been accumulating for a month and am ahead (a bit!)

"Webjet today announced a major milestone of over $1million total transaction value for yesterday 29 August.

Commenting, Webjet Managing Director, David Clarke, said:

“We are really excited by this extraordinary milestone in our company’s history. It is the equivalent of over seven jumbos of passengers in one day. Only two years ago this would have represented a very good week’s turnover!

On top of the recent Hitwise data which has indicated that Webjet has, for the last three weeks, taken number one internet travel agency position in Australia, we are greatly encouraged by the clear success of our service, technology and product offering driven by our new marketing campaign with the National 7 Network.

It is, of course, early days into the new financial year and no forecasts are made at this time.”

David Clarke
Managing Director
Webjet Limited"

Good luck as always

WASL

**stevieb** · 01-09-2006, 11:59 AM

Thanks. I'm one of those who think you should watch what people do rather than analyse what you think they should do.

The concept that people act rationally in all circumstances is grosslly overrated and has been proven to be incorrect in a number of circumstances.

In this case, the evidence (via total transaction value) points strongly to the fact that people do like this site and transaction value is ever increasing, and quite strongly so.

**tone** · 07-09-2006, 04:44 PM

It's all about the convenience of going to one place and performing your transactions. I don't think $20 is too much to ask for that service. Some people get hung up on ticket price and forget that you probably blow that much travelling in a taxi to the airport or booking a more expensive room in a hotel at the other end. Also, they offer the ability to book split flights across multiple airlines if you want to. And if everyone wanted the cheapest flight, why would the airlines have multiple and more expensive types of fares? The also offer hotels, cars, and more recently insurance. I don't subscribe to the philosophy that all web businesses should be able to charge less than bricks-and-mortar, at least not in the short term. I can only see good things coming from this company, with no debt and so less risk in a downturn or an increase in interest rates.

**stevieb** · 07-09-2006, 06:26 PM

Yes, I agree. Now we just need to wait for something to send the share price up. Seems stuck in that 33-34c range, though it does look rather like sellers are now weak on the ground so maybe get a kickup tomorrow if the market is stronger. We'll see.

**stevieb** · 25-10-2006, 07:44 PM

Well last two days has taken us well out of the 33-34c range and as high as 42c today on about 30 times normal volume.

Question is, is something up or are these just people reallocating funds from FlightCentre now it is to be privatised?

**upside_umop** · 07-09-2010, 01:43 PM

Been a while since anyone posted on this thread, but I thought I would restart it up.

Since the last posting in late 2006, WEB has crabbed sideways with its PE starting to catch up with it. The last 2 years it has formed an uptrend going from around 90 cents to 2.30 today...it has posted average earnings increase YoY since it was profitable in 2005, averaging around 50% since 2006 (exclude first year profitability increase as it skews things a bit).

Heres a few pictures to put in perspective.

WEBJET has historically grown its key measures well. A small dip in Operating CF during the GFC shows its not completely immune to the downturns.

Shows the current uptrend. You need to give it a little breathing space given its liquidity.

Weekly chart...crabbed in a trading range for 4 years while the fundamentals gets better?

Here is a comparison vs WTF on some key performance indicators 2006-2010 (most applicable given when WEB entered profitability). Although WEB is above WTF on most of these...it still is in my mind a more risky stock given its lack of diversification. Growth rate is YoY.

Sitting on PE of around 16.5 currently with a market cap of 180 million. These sort of stocks can easily blow out on hype and trade on ridiculous P/Es. I look to sell at anything above 25-30. Even then, you have to take into account earnings guidance as sitting on a historical PE of 25 could be a forward PE of 15.