I think you will find expedia was trading on around 8 times not so long ago and has managed to pull its finger out and get a substantial improvement in its earnings.
WTF's growth profile has seriously flattened... nothing wrong with 10% growth but they were previously priced at double that growth.
I'm not a believer that it's because aussies are going overseas and not holidaying locally. there has been a serious amount of new competition come into this space and WTF have not responded.
what was their big response? - WEB have taken off lets copy their model and see if we can make a go of it.
So the CEO has jumped ship to a better paying and higher profile company. The earnings of the company are no different than when it was $4.40 a few days ago but it sounds like a serious case of the market not being happy with poor succession planning.
And anyone like to give a rocket to the chairman... who is also the CEO of Tatts being replaced by the CEO of the company he chairs and didn't have in place a proper succession plan! Two strikes for poor corporate governance and board performance.
Seriously underwhelmed by the boards performance via this announcement and I'd suggest this is the main reason why the market has marked down the stock and I will be selling down into any price rally as a result. No confidence.
WTF Price at posting:
$4.19 Sentiment: LT Sell Disclosure: Held
