l get the drift of your argument but the SP multiplied by the number of shares equals the market capitalization of any company. Hence MC changes on a daily basis as the daily SP moves either up or down.
Morning Star has current fair value for WEB at circa 5.34 from memory. But again, they have been wrong many times. l guess with no cash flow, the company is well over valued even at 3.00 dollars.
Thats the dilemma. What is a fair entry point? What is the time frame to cash flow and opening up the skies? My bet is NZ and Domestic markets will be the only drivers of income this year, so the real question is how much is this worth to WEB? Fortunately, l think their on line platform is much cheaper to maintain so my bets go to WEB rather than the flying center with lots of stores.
l am sitting back because l think WEB has been over priced by an overly enthusiastic market. Happy to invest but not at these levels. Between 2.00 and 2.50 is my thinking. Just my opinion though.
WEB Price at posting:
$3.09 Sentiment: None Disclosure: Not Held
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