Short squeeze, page-133

Hey jdawg, I saw WEB announcement on their TTV increasing by 41% for the 2H. However, I don't think just comparing two companies growth rates necessarily point to anything. It is well known that large companies don't ( can't actually) grow as fast as smaller companies. Here there is a large difference in scale: WEB is about 5% of FLTs P/L selling about $650m TTV in 2H v FLT at about $9.0bn, so they are very small compared to FLT. Its an increase in TTV of just $186m over 2H14 for WEB, and if FLT were to have the same growth rate it would be $3.70bn! Lastly, WEB EBT (e) is about $23m v FLT at $360m.

WEB is guiding FY15 EBITDA to $27m, v $23.3m in FY14, so while TTV has increased 41%, earning are only 16%.....showing a similar dynamic to FLT.

Once again, its not just about TTV or market share, its about P&L, so while more is usually better (but not always), I would prefer to see FLT lose TTV on low/unprofitable sales than increase it unprofitably.