Archive for September, 2017

New Trade: Long Expedia ($EXPE) & Short Travelzoo ($TZOO)

By: ispeculatornew | Date posted: 09.15.2017 (6:01 am)

Today I am opening my 13th trade of the year in what has so far been a good year. As is always the case, you can see past 2016 (and previous years) trades here:

http://www.intelligentspeculator.net/livetrades

Let’s start off by looking at the numbers:

TickerNamePricePE RatioPE Next YearReturn YTDSales GrowthAnalyst ratingBook ValueRevenue/ShareSales 5Y Avg GrowthEPS 5Y Avg Growth
EXPEExpedia Inc143.3855.4621.8329.3931.494.5327.8558.3520.277.3
TZOOTravelzoo7.7525.3226.61-16.49-9.2931.189.18-7.182.91

Revenue growth for Travelzoo has been challenging to say the least and that makes it difficult for me to make sense of its current valuation.

Long Expedia (EXPE)

Expedia has been an incredibly steady and high performing name in the past few years and part of that, of course, was due to CEO Dara Khosrowshahi who has now left to take the same job at Uber. I do believe that the future continues to be extremely bright for both Expedia and Priceline in the online travel industry and at these levels, I have slightly more confidence in Expedia but both will do well as they continue to profit from the consolidation of the industry.

Next earnings: October 26th 2017


Short Travelzoo (TZOO)

Looking at traffic data and trends from Google confirms that there is very little growth coming out of Travelzoo. One thing that did come out is that TZOO seems to be getting some traction in China which would be promising but that is also an extremely competitive area and I’m not convinced that it is enough for TZOO to turn things around.

Next earnings: October 26th 2017

Disclaimer: Prior to opening this trade, I do not hold a position in EXPE or TZOO

Closing 1 Trade ($FB, $MTCH)

By: ispeculatornew | Date posted: 09.15.2017 (5:36 am)

This morning I will be closing one of the 4 existing live trades, where in April I went long Facebook (FB) and short Match Inc (MTCH). Obviously, MTCH has done extremely well and continues to be the clear leader in the online dating space. That trade currently stands at -29.69% bringing down the average of the year to barely breakeven.