FLT price higher than CTD...WHY?, page-4

FLT is a much larger and more mature business than CTD and recovery is being priced in. FLT and WEB both panicked early on in the Virus scare and basically doubled shares on issue (FLT 96.1% INCREASE) via raises at rock bottom prices.
CTD share price has way outperformed FLT in a % sense since the COVID lows. Check the chart.
The days of FLT being $40 plus again are a long, long way off simply because EPS has now been cut in half going forward. In relative EPS terms the close today of $11.95 because of the doubling of shares on issue is equivalent to $23.90 pre COVID. FLT has spent the bulk of the last 8 or so years above $23.90 so the current price is no surprise with recovery being priced in. It reached a high of $50.85 in August 2018.
Cutting EPS by half flows on to popular ratios such as PE and Dividends per share. The bricks and mortar part of the business is and has cost FLT a fortune during this crisis and its inflexible.
CTD even as at 7th May 2020 had a net cash position of $30 million - about 2 months ago - see ann 7th May 2020. A net cash burn at the lower end of $5 - $10 million per month plus a huge unused loan facility ($A200MILL). CTD has 60% of its business as Domestic travel and the Global move to online everything including bookings will suit its business model and also push a lot of the smaller fry competition to the wall.
Pre Covid CTD traded at a much higher PE than FLT so in relative terms it always had further to fall.