Since inception, Priceline has been reporting payments to partners as its own revenue. Confused are you? I'll let my good friend L.D. Putra, CPA explain:
"Assume that you have a business that serves as an intermediary between a steel firm and various car manufacturers. Assume that over the last year, the supplier has paid you $100,000 for helping it to sell steel valued at $3 million. What is your revenue for the year? The logical response is $100,000, since that is the amount of funds that you received in return for providing your service. However, using creative accounting, you might claim revenue of $3 million for the year by arguing that the steel was yours momentarily before it was purchased by the car manufacturers.
Priceline has used this accounting method, which explains how it could achieve a revenue of more than $1 billion per year. That is, Priceline’s accounting suggests that Priceline owns the products that it sells for others."
Like I said before, Priceline is Bill Ackman's next target short. Priceline has been taking advantage of SEC and GAAP loopholes. When the Street realizes PCLN's valuation is based on revenue for fees ONLY and worth $12-15 BIL it will be a bad day to be long.
Sentiment: Strong Sell
No it wont and it's valuations is so far off that once the street recognizes people aren't being fooled anymore...it will trade right where it belongs. Read my next post, I'll explain why Earning are not what they seem...i'll need to create a new topic for this
agree PCLN very well thoughout technical analysis why it could go down to 800 http://investorshub.advfn.com/boards/read_msg.aspx?message_id=107201070
either way, it's a win for shorts..they will have to guide lower on Q4 and total year b/c of weakening Euro economy and Ebola fears
$750 is not out of the question
No I understand why the mayor of London said he expects Ebola to hit the city...and why New York is rehearsing. It seems this is going to get ugly. We need to ban air travel from Africa....maybe a ban on ALL international flights is a better idea. If only we had a Republican in office
I just double checked and consensus estimates for Q3 are a lofty $21.20 per share. Last Q3 they did $17.30. HAHAHHAHA! No way they'll make earnings.
Meet, Beat or Miss....they'll be guiding lower for Q4 and total year estimates (last Q4 they did $8.85) because of the travel paranoia over Ebola and failing Euro economy....We're looking at $850 in November
...and nearly as much as CAT, EBAY, MCD and Facebook's ipo price.
My question is this:
who let stupid in this market?
PCLN shouldn't be tradin over $600. That would give it a hefty Market cap of nearly $30 BIL....still too expensive in my opinion.
He is going to expose PCLN and their misdeeds. On fundamentals alone (and current events), PCLN is worth $800. After he exposes their shady accounting PCLN is worth $550 on it's best day