|Momentum running against belligerent Webjet.|
Thursday, 5th June 2014
Source : Martin Kelly
Investment momentum has turned strongly against Australian online travel agent Webjet, which suffered the embarrassment of a stock exchange query on its sharp stock price fall over the past three weeks.
Webjet says there's nothing wrong, that it's business as usual. Maybe, but there's not a lot of love around for Webjet and its CEO John Guscic, who has been openly hostile to financial analysts.
Following Webjet's half-year results briefings, talk swept the financial community of Mr Guscic berating and belittling analysts that cover his company in front of their investors.
He was apparently frustrated with what he thought was their lack of knowledge – and faith in – his company.
But who is to blame?
Webjet has a reputation for revealing very little about its internal machinations or breaking out key components of the business, which has become much more complicated since the acquisition of Zuji last year.
Compounding matters was over-ambitious forecasting of the immediate financial benefit Zuji would bring to the Webjet bottom line.