It is a nerve wrecking time to be an investor in Webjet, and some of the non-holders have valid points about dilution and COVID19 disruption lasting into next year.
But as a long term holder, having an averaged down price of $11.76 per share, I will be jumping into the capital raising with both feet. It is unquestionably a risk, especially given the prospect of zero revenue for Webjet for the rest of this year at least. But:
a) I need to either protect my existing investment or wear the existing losses. b) Getting involved with the CR means I will be supporting the company and increasing its chances of survival and eventual recovery c) I can average down my price from $11.76 to $4.90, countering much of the dilution effect. d) Webjet is a good, geographically diversified business, with strong leadership. Even if international travel is on hold for the next 18 months, domestic travel in a number of regions may reopen.
WEB Price at posting:
$2.70 Sentiment: Buy Disclosure: Held
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