What's going on ?, page-3

With the Australian 10 year bond rate is ticking upwards, my best reason that fundies reducing their exposure to WEB because it is currently trading on a P/E of 41.8. FY16 equity produced 17% earnings (RoE).

With Forecast FY18 growth of 117% the high P/E isn't a problem. This growth forecast comes from analysts at Ord Minett and a firm whose name was withheld. Whether the growth can eventuate will have a fair bit to do with the acquisition of Jac Travel. This acquisition draws comparisons with SGH's Quindell acquisition however the size of the acquisition is much smaller. I quote Wuey72's post on the Record Profit thread. Wuey has made a good prediction on when we could expect to see the numbers coming through from the acquisition.

↑
The new FY has got off to a promising start. Management provided trading update up to August 28. All metrics for the various business in B2B and B2C market had either exceeded or in line with expectations.
At the AGM in November, hopefully we get an update on the JacTravel operations.

I sold a quarter of my holdings as I was overweight in this. Also hope to ride out this spike in bond rates and current down trend. I wouldn't want to see another 500k vol tomorrow and another 20-30c drop.

It would be worth reading the research from Ord Minett if anyone can find it. While this acquisition and the rights issue was very similar to what CTD has done recently, I have faith in the company and their due diligence on the Jac Travel acquisition.