You might want to give a listen to the cnbc interview with EXPE's ceo yesterday. He notes that "things on are track" meaning there is no chnge to prior guidance which called for things to begin improving during the current Q as the meta changes implemented by TRIP are now understood by the street and reflected in estimates. He didn;t mention it, but there still has been no material increase in the revenue estimates or operating leverage math Travelocity piece will bring as it is integrated over the next few months.
As for the Barclay's guy? How does he host them at conference 3 weeks ago, affirm the BUY rating with a "mgmt is doing great and story expectations reset is behind them now" research update, and then come to the conclusion that the hotel piece may have increased competion going forward on the heels of line mgmt changes at expehotels? Our guess is that their desk and perhaps key clients have a big short position to resove and likely got that done on yesterday's first thing drop. The stock recovered all day long after that if you study the tape...
The ceo's comments re the hotel piece were also part of the timing of yesterday's turnaround higher. He made it clear that while the DC mess is not good for the economy and if it goes on it will start to have a negative effect on business leaders' attitudes, commerce, travel and eventually hotel business, for now he is hopeful a resolution can be had that solves the problems without creating any notable damage. Does that sound like EXPE stock should be sold off vs the hotel group, pcln, or other travel bookers to you? Look, this is an institutional level stock, but what bs to see retail investors get hurt selling out on the artificial drop done for self-serving purposes. This is EXACTLY the kind of bs we like to take advantage of by adding to quality positions.
Our PT of $60 by EOY remains intact, but the bs drop means that expe reporting in line for 3Q means a 10% bump is coming this month.
Our PT remains $100 by EOY 2014 -- given the latest update (car rentals, hotels and airline travel booming and the economy is just starting to recover -- that $100 is more conservative than our initial PT of $60, subsequently raised to $70 on the strong Sep Q and Travelocity pieces last year.
Love that all the short putzes dissing us last year are all out there sukin on their Woody Allen socks full of horse dung and silent. LOL
"This is EXACTLY the kind of bs we like to take advantage of by adding to quality positions.
Our PT of $60 by EOY remains intact, but the bs drop means that expe reporting in line for 3Q means a 10% bump is coming this month."
The stock is already up 6% since that post... but likely to continue running now as the DC bs fades and the economy is not collapsing. LOL See you all at $60 by EOY, a slam dunk as management begins to discuss the upside numbers from Travelocity.