Expedia and Priceline have been going head to head in an acquisition war for years, each putting down more than $3 billion since 2013 to build out their respective online booking portfolios.
This kind of consolidation is reshaping the entire travel industry, as many of the most recognizable brands in the online travel booking space will soon belong to one of the two companies.
•Travelzoo's new hotel booking service is expanding.
•Travelzoo's core business with advertisers is "getting stronger".
•The macro environment for Travelzoo's leisure drive market niche is the best in years.
•Travelzoo's EV of $84 million very cheap in a period of rapid industry consolidation.
•Previously bearish Street.com says technicals point to $11.50 retest.
Pcln beat the number & they announced a $3billion buyback.
CEO Darren Huston said during a conference call that he doesn't believe that the recent announcement by rival Expedia Inc. that it is buying Orbitz Worldwide Inc. for about $1.3 billion is a negative for the online travel sector. The executive said that the buyout "consolidates and clarifies competition."
In other words he believes consolidation is good for the industry and there's more to come...
AWAY was another company mentioned in recent articles along with TZOO as possible buyout candidates. Right now AWAY is up almost $1.00 on 800,000 shares. It sure feels like something is up in this industry.
Adding to our belief that Travelzoo will be the next to go is our awareness of situations with significant holders of Travelzoo who have recently made attempts at discussions with management, the kind of conversations that in the past were encouraged but have over the last few weeks been characterized by unreturned emails and phone calls. Management has gone completely silent and we believe this is likely due to a sales process that is already in motion or possibly even an attempt by management to take Travelzoo private. The current $84 million enterprise value for Travelzoo is just way too low for the assets involved and no one is more aware of this valuation disconnect than Travelzoo management. With close to 60% of shares outstanding already owned by insiders and $54 million in the bank, there is almost enough cash on hand to buy the remaining shares.
If Travelzoo has already started a sale process, we would expect multiple bidders and believe that Trip Advisor, Alibaba, Amazon and Groupon would be among the most likely to bid aggressively for Travelzoo's assets. We also believe that Travelzoo will fetch a significantly higher premium than the 25% Expedia paid for Orbitz.
Looks like a normal pullback to me. Some folks are taking a profit this morning. The volume is fairly normal so far. The mm's like to shake you out if they can. It gives them a great opportunity to buy some cheap shares. I just added to my position.
I must admit I haven't followed TZOO until recently. I was looking back at a five year chart of the company and I see on April 17, 2011 the closing price was $94.22. What the heck happened over the last few years?
NEW YORK (TheStreet) -- Shares of Expedia (EXPE - Get Report) are soaring, up 9.93% to $85.99 in pre-market trading Thursday, soon after the online travel agency announced it would acquire competing company Orbitz Worldwide (OWW) for $1.33 billion, Reuters reports
Now that sounds painful. I bought at $8.92 because I thought that TZOO had bottomed but of course then today it makes another new low. I do follow the folks at GrooveVC and they do choose some very good investments. I hope they are correct on TZOO. I know it's tough picking bottoms but seeing where TZOO has fallen from does give me hope that better days are ahead.
I have always wondered why there is such a lack of insider buying for locm. I guess I've become spoiled by owning inuvo and seeing the insiders supporting their company for so long. It really amazes me that locm insiders aren't buying at these depressed prices.
From a technical perspective, XCO is ripping higher here with decent upside volume flows. This stock recently formed a double bottom chart pattern at $1.68 to $1.71. Following that bottom, shares of XCO have now started to spike higher off those support levels and it's quickly moving within range of triggering a near-term breakout trade above some key overhead resistance levels. Market players should now look for shares of XCO to break out above some key overhead resistance levels at $2.04 to around $2.25 with high volume.
Traders should now look for long-biased trades in XCO as long as it's trending above those double bottom support levels and then once it sustains a move or close above $2.04 to $2.25 with volume that hits near or above 3.75 million shares. If that breakout triggers soon, then XCO will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $2.56 to $2.65. Any high-volume move above those levels will then give XCO a chance to tag its next major overhead resistance levels at $2.90 to $3.25.
the street had an article out today stating that the following three companies could be likely takeover targets from a major....hk,kwk & xco....in the next six months...shocking considering thestreet never has anything good to say about xco.
I really feel that buying shares at the current price has to make sense. I was looking at SD today and I see that their volume was 52.5M shares and they're under $2.00. There just has to be a bottom to all this nonsense !
Saudi Arabian crude is the cheapest in the world to extract
because of its location near the surface of the desert and the
size of the fields, which allow economies of scale.
The operating cost (stripping out capital expenditure) of
extracting a barrel in Saudi Arabia has been estimated to be
around $1-$2, and the total cost (including capital expenditure)
$4-$6 a barrel.