JET 0.00% 43.0¢ jetset travelworld ltd

Jet- green alert to 35c

  1. 258 Posts.
    Jet can back on the Board at about 26/27cents. For a while there was good support at the 25cents level and it was looking like it could go higher. But during the day it slipped down to 23cents. I think the shareholders of Heartlink who have been holding the stock (which now becomes JET) just wanted to get out. Afterall 23 cednts is a premium to the initial issue price of 20cents in Heartlink a couple of years ago. Plus they also have the oppies for free then.

    Jet is a substantially different business to the old Heartlink- by the way they still have the biotech business which the directorts suggest that they would hive off later in the year. I have read the prospectus and the Jet business seems to have huge potential. I was comparing with business such as Flight Centre. Remember that Jet incorporates the Jetset business and the old Traveland business which they bought it for cheap because of Sep 11 and also problems with the avaition industry some months ago- so it was an opportunistic move. This has not been reflected in the price. I believe they are many major players interested in the business and are aiming to take a stake. In fact if you look at Intermin and Solbec which have a stake in the company, they have sold big chunks (I cant remember the numbers), prior to the relisting of Jet to a buyer who is accumulating. The general feel out there with the brokers is that the company has very good potential and will be realised by the market in the near future.

    The numbers look very good and it has a ready travel chain tapping into a billiuon dollar market. The forecast profit for this year and based on current shareholding and at 20cents issue price, it is trading at just over 7times earnings. Flight Centre is trading at well bove that (I seem to recall 40times). So lets say if Jet is suppose to trade at conservatives 15times earnings, then the share price should be close to 40cents ie 20cents at PE of 7ish, therefore at 15times share price should be closer to 40cents. And this is still nowhere close to Flight Centre valuation. I think it has a substantial upside and the income streams will flow through in the next few months to prove the numbers. Also Jet now has experiecend travel people on their management board that will improve the value of the chain.

    Please do the research and see if you agree.

    Bigprofit
 
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