Shorting is a bad way to play the market. You should hope a stock price goes up, not down. Its extremely risky. The most consistent investment in the stock market is the entire stock market itself, proving that stock prices generally go up. Would you short the entire stock market? Just my opinion.
I hope everyone makes money with ROOM, but I hope I make more the old fashioned way.
Hope all is well
Yoda, I do not disagree with everything that you said but I do feel that ROOM is the best positioned hotel booking site on the web. I do feel that the growth will continue as more and more people use the internet as a source for booking travel. ROOM allows you to do research and call to make your reservation if you are not comfortable with booking online.
The economy slowing down will have an effect but this last quarter was one of the worst in 10 years for the hotels and ROOM grew 77%. People are not going to stop traveling all together and it only makes sense that ROOM will benefit from the continuing growth in internet use.
ROOM is a re-seller of hotel rooms. Regardless of what management says, ROOM will experience a slowdown as the economy slows.
Also, ROOM is like any other low-margin, high P/E stock. The stock will tank hard at the first sign of any sort of trouble. All it needs is a trigger: Slowing growth, USAI sells shares, loss of a key contract, etc. Heck, even a big brokerage downgrade could take the stock down hard (look at COLM the other day).
The upside here is almost zero. All the positive possibilities are already priced in for years to come. The downside is at least 50%.
Try using ROOM's service sometime. It is truly a joke. They don't have the lowest prices, they make it almost impossible to contact a human being when there's a problem, and the cancellation/change policy is too strict.
Another thing I've noticed about ROOM... (I travel a lot, and I've tried ROOM's service a few times.) On more than one occasion I was given a less-than-average room in a hotel when I booked with ROOM. It's the same type of service you experience when you book a room through Priceline. The hotel clerks will often give you the worst available room, because you've paid the bargain-basement rate.
To me, it's worth paying a little more (or sometimes the same or lower price) to book with a real travel agent or directly with the hotel. At least I can relax knowing that my room reservation can be changed if my flight is cancelled/delayed, and that I won't be treated like a leper at the front desk because I booked through one of those internet discounters.
ROOM operates on the perception that if you tell people you have the lowest rates, they will believe you. It only works for so long......
Yoda, I'm disappointed in you. I was hoping for some intelligent conversation with you regarding my posts. You seem to be leading the charge of ROOM's downfall and I pointed out reason to believe that the growth will continue. I'll take the lack of reply from you as an assumption of being correct.
I guess it depends on the amount of business they are generating from ROOM. I would imagine the hotels are under some sort of contract binding them to ROOM for a specified period of time and with all the growth that ROOM is seeing, why would you leave if you are the one ultimatley benefiting form the growth.
True the hotels have to sell to ROOM at low rate but it is better than being unsold.
Travel continues to top the list in regards to ecommerece. With less than 10% of all travel related purchases done online, and growing daily, ROOM is positioned to continue it's growth. With over 20,000 affiliate websites, the 5 year agreement with Travelocity and the recent purchase of Expedia by USA, ROOM is the only hotel booking site that has the ability to profit from all of the top travel sites in the industry.
Orbitz and Hotwire will be used mostly for airline tickets and Priceline is a non-factor. The hotel industry has been the slowest to migrate online but all studies show that it is catching up to airline and rental car purchases, this only bodes well for ROOM since they can be found everywhere one looks and books.
With call centers to handle reservations offline,the affiliate network, Travelocity, Cheap Tickets, it's business model and the recent purchase of Expedia, I see no other online ecommerece company as well positioned as ROOM.
1st of all, what makes you think USAI will sell?
They could be in it for the long term and sell 5 or 10 years from now.
2nd, the "bad" economy will make more people shop for cheaper deals, hince Room. You saw their numbers. They beat everything across the board. I admit they are a little pricey right now and they have had a huge runup but they have low market share and are gaining share every month which means growth may not slow for a year or 2. I ended up selling everything @ around 47 but I would buy in the 30s.
Because it will make you money.....and it has over the past year.
You can�t be serious when you say shorting is riskier than buying...it depends on the stock and the situation...there are some stocks which are insane to buy...