Excellent summary. I found that out after spending the entire weekend, two weeks ago, studying Webjet's past announcements since 2016 and how they moved their core business from OTA to WebBeds. They know they've got a good thing going on, and all they need is scaling the network effects up.
They needed to penetrate Europe, so TC. They needed to penetrate Middle East + Asian, so DOTW.
There are many other mid-sized players ripe for the picking. I hope Webjet uses debt to fund these, as debt is cheap (and will continue to be for the foreseeable next 3 years), and not scrip.
Also, great insights on loose monetary policy's effect on future cash flows being less discounted. It is a rare opportunity to buy into a growth company.
Other examples of companies being oversold that I can provide (besides the BAL examples others here have provided) are: FLT at $28 in 2017 after regularly trading around $40's which was a 30% drop. WEB at $10.5 in late 2018/early 2019 after regularly trading around $13's, which was a 30% drop. ALL at $21 in late 2018/early 2019 after regularly trading above $30, which was a 30% drop. KGN at $2.80 in late 2018/early 2019 after regularly trading around $7's which was a 60% drop. A2M at $9 in late 2018 after regularly trading around $12 which was a 25% drop. SHV at $4 in late 2017 after regularly trading around $6.5 which was a 38% drop. RMD at $12.5 in early 2019 after regularly trading above $15.5 which was a 20% drop.
These companies went on to make me 30% returns to 250% returns (in KGN's case), due to the market mis-understanding these companies. Most had ONE short term issue (I should classify it as non-issues-that-the-market-thought-was-an-issue), amidst a growing revenue line, growing profit line, multiple tail winds, great management.
I remember these ones clearly because I bought in at those times.
OF course there are ones that did not play out or have not yet played out.
CTD doubled down at $20 after trading consistently above $27 PPH in at $2.8 after trading consistently above $3.8 APX backed up the truck at $21.5 after trading consistently above $27
WEB is another one that I have continued to closely monitor, I feel it could be another RMD, providing >50% returns. OR it could even be another KGN, IF this gets pushed down to $9. The further it gets pushed down, the more money we'll make if we time our purchases right.
WEB Price at posting:
$10.23 Sentiment: Buy Disclosure: Held
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