Vayama, questions are asked on these forums eternally. Some...

Vayama, questions are asked on these forums eternally. Some genuine, some rhetoric and some to get an interest going. Answers should be taken with a grain of salt. Generally.

There are, however, from time to time, a few good posts and occasionally some great ones.

GENUINE answers, IMO should be given by people who have studied the stock concerned. Because we are ALL time challenged, and with so many stocks, it's usual for us to have a cursory glance at first, then make our minds up if it's worth continuing the study or get on with something else.

This glance does NOT make one knowledgeable to reply to posts that should be taken seriously.

Just a few facts you overlooked in your research to appear competent.

1. Since 2005, web purchases in general have grown exponentially. The greatest % increase is in travel related industries.

2. Because of reorganisation WEB, there were millions of ops that were converted as share price increased. (If you look at the long term chart you will see a cup and holder formation). These conversions gave the company too much cash which had the effect of raising the PE proportionally. WEB management have been, and as today's annx indicates, successly studing ways of rectifying this. BTW, these oppies conversions caused a huge overhang which helped keep the price depressed.

3. The other thing that depressed the SP was the earnigs. These, as your glanced suggested have been nothing to write about. But the glance HIDES what is really happening and what a more careful study will reveal. That (a) TTVs ( Total Transaction Values) are increasing in multi tens of %. But earnigs are relatively flat. WHY? Well WEB earnigs, in short come from 2 sources, Commissions and Service Fees. Airline Comissions were decreasing and have now ceased. Last half yearly total commissions were down to about $1.5m and that will decrease further. But have a look at what is happening to the service fees part of the equation, take into account what the TTVs are doing and you will get an entirely different angle.

I'll leave that to you.

Kg