this stock is due for a major breakout move on huge volume, 2 year chart is flagged for major move up
toying with pivot point at 1135 but resistence today is around 1150
looking for break of 1150 and run to high 1100's before any consolidation
will see 1350 before year end as hedge funds rush into momo stocks to show on their accounts and to show performance
finally we are going to get some institutional viewership! LOL
according to SEC filing on the 9 million raise the next likely news will be announcement of reverse stock split and NASDQ listing. THe effect will be a stock with very small outstanding and float.......will likely attract momo traders with the expected sales growth in the 100%
hedge funds and mutual funds will continue to rush into this name
They will want to show the big winners and have a chance to buy this one on the cheap
"I think Priceline is actually among the cheapest momentum stocks out there," insists the Mad Money host.
"When you back out the billions of dollars of cash on the company's balance sheet, Priceline sells for just 19 times next year's earnings estimates, despite having a 20.7 percent long-term growth rate," he said.
Of course Cramer is a fundamental investor and he doesn't think an inexpensive stock is a buy simply because it's undervalued. "Lots of stocks seem undervalued and then stay that way forever," noted Cramer.
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In the case of Priceline, the Mad Money host sees the stock as well positioned to profit from a major shift underway in the travel industry - something Cramer calls a long-term theme.
In this case, the investable theme involves individuals as well as business travelers forsaking travel agencies and instead booking online.
Of course Priceline isn't the only online travel site winning share away from travel agencies. Others stand to gain market share, too. However, Cramer thinks of all the companies in the space, Priceline is the best stock to own. Here's why:
1. Overseas growth: "Priceline has huge European exposure," said Cramer and I believe that's a big opportunity. In fact, Priceline gets 85 percent of its bookings from overseas versus just 44 percent at Expedia and a piddling 20 percent at Orbitz."
2. Hotel strategy: "The vast majority of Priceline's revenues come from hotel bookings—90 percent to be exact—which is much more profitable than selling airline tickets," Cramer explained. "The global lodging industry is extremely fragmented, whereas the airlines industry has been consolidating rapidly. Expedia is only 75 percent hotels, and Orbitz is merely 50 percent."
3. Profitable business model: "Priceline was the first player in the industry to adopt an agency business model, meaning they act as a broker between the hotel and the customer, and then take a 15 to 20 percent cut of the transaction whenever someone books a room. This is a much safer way to do business than the merchant model, where you buy hotel inventory upfront and then take on all of the risk, even as you do get a larger cut if you end up selling the rooms," Cramer said.
4. Mobile strategy: "Priceline has become the king of mobile travel reservations thanks to its brilliant $1.8 billion acquisition of Kayak, completed earlier this year," Cramer said.
All told, Cramer sees every reason for this stock to rally further.
If they signed up a major big box distributor that is news worthy and needs to be announced!
Come on management improve your PR!!!