New Trade: Long Priceline ($PCLN) & Short Orbitz Worldwide ($OWW)

By: ispeculatornew
Date posted: 08.19.2013 (3:00 am) | Write a Comment  (2 Comments)

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Things remain fairly good for my tech & short stock picks. I have not done very well with my latest pick though and will be closing it out this morning. I had opened Long TripAdvisor (TRIP) and short Pandora (P) but TRIP had a very difficult week. It now stands at -23%. Why? It warned that the current quarter was going to come in worse than expected sending the stock down. That being said, things do remain good as my average trade this year has returned 1.84%. As always, you can see my live tech long & short trades here.

Today I’m back with a new long & short trade with two fairly familiar names.Let’s start off by looking at the numbers:

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And the quarterly Y/y revenues growth:

PCLN Revenue Quarterly YoY Growth Chart

PCLN Revenue Quarterly YoY Growth data by YCharts

pclnLong Priceline (PCLN)

I’ve been a believer in Priceline for many years and long term shareholders have done extremely well. The company has a very steady user base and I personally think the acquisition of Kayak was a brilliant move to better compete with other players in the industry.

PCLN

Next earnings release: November 1 2013

owwShort Orbitz Worldwide (OWW)

Orbitz has had a good run and remains one of the top performing travel related stocks this year. The big problem though remains that Orbitz has been growing a lot more slowly in terms of revenues and profits so I don’t see anything that could possibly justify its current P/E ratio.

OWW

Next earnings release: November 7th 2013

Disclaimer: No positions on Priceline (PCLN) or Orbitz (OWW)

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2 Comments

  1. Comment by Johan Lindén — August 21, 2013 @ 11:45 am

    Why is TRIP/P still in both your sidebar and in your live trade page?

    Above it said that you were closing it at the time of this post.

    Thanks!

  2. Comment by IntelligentSpeculator — August 21, 2013 @ 1:10 pm

    @Johan – I did not update the file yet, but will try to do it later today. The position is indeed closed. Thanks!

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