Reporting date is coming soon (August 20) and with it a confirmation of what we already know. You'd think the shocking figures are already priced in, but who knows what a panicky market will do? I'd expect another steep decline in the share price as the obvious reality is confirmed: virtually no money coming in, $15 million per month going out, no end in sight to the J-curve of Covid new cases and deaths, and no vaccine or treatment for a long time – which is the only thing that will save Webjet and all travel companies. (I am not counting the vaccines that are "promising", "in rapid development", "showing good results", etc).
This is simple maths and, no matter how much you think Webjet is a good, well-run business, no company can survive that situation. I would think by the end of the year, the board will be considering the only logical step to ensure survival, another highly dilutive cap raise. I know that the recent con notes extend the survival time for Webjet. I don't expect that cash to be spent on acquisitions as they'll need all the money to keep the lights on.
If you've got the cash to hang in WEB for the long haul, and if WEB can survive that long, hopefully there will be some good news. But it's not "just around the corner", it's in years. Personally, I'm hoping that WEB will be a takeover target, as I think that's a better bet than hoping for organic growth.
WEB Price at posting:
$2.83 Sentiment: Hold Disclosure: Held
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