1. Why do people put such faith in the guidance from big brokerage firms? Every time they get it wrong, the guidance is changed to reflect the new conditions. In WEB's case, they downgrade their SP targets with the same assurance as when they were pumping the stock the day before. I give as much weight to a brokerage forecast as I give to a weather forecast.
2. JP Morgan, MUFS and other brokerage firms we see regularly in the Substantial Holder updates – you know the ones, in one day, out the next – are shorting the stock. In most cases, this is shown in the details of the update where it lists "shares borrowed" or "shares returned to lender".
3. Here's a chart for a stock I used to be in. The red circles show GS's advice to clients. The green line shows the share price. At the same time they're telling clients to buy or sell, GS were doing the opposite. For some reason, it's not illegal. But hey, these are the same guys who brought us the GFC, selling AAA ratings to banks that were just about to collapse.
Webjet announced the hit to revenue over a month ago. The market shrugged it off, maybe thinking it was just normal caution, in the sense of down-playing expectations to take some heat out of the overly-pumped valuation.
The company is in good hands, with a good plan. I don't think it will be a quick recovery given the size of the hit, but some comments on this forum lately (mostly from people who don't hold) are just silly scaremongering.
WEB Price at posting:
$4.58 Sentiment: Hold Disclosure: Held
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