WEB and the Tourism Sector rallied strongly on Monday after Scott Morrison announced Australia would finally reopen its international borders later this month to double vaccinated people. Undoubtedly a huge boost for our $60bn tourism industry – due to COVID the most recent data is unfortunately from 2018! This is another interesting sector to evaluate moving forward i.e. what is the fair value of some of these businesses after years of losing money and in a number of cases painful capital raises into weakness, our feeling is stocks such as WEB and Qantas will enjoy a strong relief rally that should take many of them to post COVID highs but we wouldn’t be too keen on chasing strength – sounds like our view on much of the market.
MM likes WEB short-term
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