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This is where I’d invest $1,000 right now into shares

I’ve always got my eye on where I’d invest if I had some money to put into shares.

It’s best to know where you want to put your money so you can act quickly when you actually have the capital ready to go.

Investing in a low-cost, quality exchange-traded fund (ETF) like iShares S&P 500 ETF (ASX: IVV) and Vanguard MSCI Index International Shares ETF (ASX: VGS) isn’t a bad idea.

But I like the idea of my money working as hard as it can. So, if I had to put $1,000 into the best idea today for the long-term and short-term, I would again pick:

Webjet Limited (ASX: WEB) 

Webjet is a digital travel business spanning both global consumer markets through B2C and wholesale markets through business to business (B2B).

The B2B business is called WebBeds which provides a marketplace for hotel rooms by connecting sellers and buyers. The B2B space is constantly changing, as seen by the collapse of Thomas Cook (which will hurt Webjet’s FY20 statutory result). But this also opens up opportunities for Webjet. 

Management believe that as WebBeds grows its total transaction value (TTV) and gains scale it can reach an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 50%. This will be achieved with an 8% revenue to TTV margin and a 4% cost to TTV margin, resulting in an EBITDA to TTV margin of 4% – translating to a 50% EBITDA margin.

Rezchain, which is Webjet’s blockchain solution, will play an important part in delivering these targets, helping efficiencies and reducing costs.

In the FY20 half-year result the company is expecting underlying EBITDA of at least $80 million, which excludes one-off revenues & costs and the impact of AASB16. This would be growth of more than 37%.

For the full FY20 result underlying EBITDA is expected to grow organically by between 16% to 23% with total growth of 26% to 34%. Underlying EBITDA is expected to come in between $157 million to $167 million.

In the long-term it’s clear the WebBeds could give Webjet an excellent future.

But, in the short-term I think Webjet could be a good pick because it appears prospective buyers are circling and could attempt a takeover.

Foolish takeaway

In my mind, two of the are most likely outcomes are: either the share price rises organically because it looks cheap to investors at under 16x FY21’s estimated earnings, or the share price remains where it is until a takeover offer comes in – sending the share price up.

Of course, there’s a fair chance that no takeover offer comes in and the share price falls, but those are the risks with investing.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.