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摘要 :
I am 80% to 85% confident that Wotif is a VERY good buy at current prices. The company yesterday announced at the half year net profit was $22.6 million, down 18% from the prior corresponding period when the profit was $27.5 million. Revenues rose to a record, but the cost of additional marketing was $4.5 million. Costs related to IT and other incremental expenses came to $3.3 million. There will be higher marketing costs on an ongoing basis, but I also anticipate revenues rising to another record from here ... BUT, let’s assume the current situation persists, and the next half is flat ... I believe that is the worst case scenario. In that event, the current share price is less than 13 times earnings. For a worst case scenario a P/E of 13 for Wotif is compelling . Wotif is NOT in the same league as Seek and REA but there is probably 40% of upside from here ... so given the low valuation, Wotif is a compelling buy. I will be concerned that I’m wrong if the share price is seen below $2.60, but while above $2.60, I have a very bullish bias. |
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