You asked for it, show us $7 by 2021!!, page-196

You make some good points, and I agree that WEB is overvalued as things stand now. As a holder who used the cap raise in April last year to average down, I'm just waiting for breakeven and then I'll be out. I think WEB is a good company with a strong product (in Webbeds), reputation, management and vision, but I didn't buy into the CR with more in mind than getting my money back. We hit that point a few months back but I got greedy, a mistake not to be repeated.

The word "overvalued" conjures impressions of something that's not worth the price, and that's subjective. Of course, going by the latest figures, it's not. But the market has factored in things that are not included in the figures, like the post-pandemic world in which Webjet will be in a good position to grow (assuming it can survive without further cap raises). The market got carried away when vaccines were first released, and statements by the board about their "commitment" to make Webbeds #1 in the world – a dubious goal given their nearest competitor, HotelBeds, is many times the size, and the management has given no indication of the strategy. However, that's what I think is behind the lofty valuation, not the current figures. And I'd have to admit, it's at the top of a valuation that includes this optimistic outlook. Which means any hint of problems in vaccine availability or take-up, borders closing, new variants, new outbreaks, etc, will have a savage impact on WEB's share price.

I am actually hoping that WEB becomes a takeover target, as it was just before the pandemic hit, when several bidders lined up. I can see lots of good fits with large companies who want the Asia Pacific exposure WEB's OTA offers, as well as the global Webbeds business. When (if?) global travel resumes, it would be a great addition to the stable of a large travel/tourism company. Even better, a merger with Flight Centre: great synergies between the two companies, remove duplications, save on marketing, get both the largest digital and physical presences in Australia, etc. For me, that would be a perfect match!