CAB SP is finally responding to what should be the bleeding obvious: disruptive technologies like Uber will have a hard time establishing themselves. Firstly, because they break the law in most jurisdictions, and secondly because those governments are unlikely to change the law to allow them to operate. The latter is simply because they will lose too much in annual licencing fees and be open to litigation by exisitng taxi plate owners if they do so (in some states, like WA, the government ownsa portion of the plates and only leases them out).
No matter how big Uber is, I doubt the government will bend to single-interest groups to allow them to make money with no likelihood of them paying any tax in Oz. Might be wrong.
This stock has some way to go. At a PE of 12.3, their SP would need to go to around $6.90 for them to equal the sector's average PE, let alone the market's PE. I suspect they will meet and exceed that price.
CAB Price at posting:
$6.04 Sentiment: Buy Disclosure: Held
