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MagicDiligence (< 20)

July 2012

Recs

4

Is Travelzoo Stock A Good Deal?

July 30, 2012 – Comments (0) | RELATED TICKERS: TZOO

Travelzoo (TZOO) is a publisher of travel sales and specials. The company's primary assets are its Travelzoo websites, the Top 20newsletter, the Newsflash e-mail alerts service, a few travel-based search engines (SuperSearch and Fly.com), and more recently, the Groupon (GRPN)-like services Local Deals and Getaways, which provide discounted products or services from local spas, hotels, and restaurants. Clients such as airlines, rental car companies, hotels, restaurants, and travel agents pay Travelzoo advertising fees to list their offerings on their Internet-based platforms. The company has over 2,000 clients and has over 24 million subscribers and website visitors. Europe accounts for about 27% of revenues with North America making up the rest.

Travelzoo's value proposition is fairly compelling for its clients. In the travel business, unsold inventory is a major challenge. Unfilled airline seats, cruise cabins, theater seats, and hotel rooms are undesirable, as the cost structure in these businesses are largely fixed (e.g. it's not much cheaper to fly a route when the plane is only half booked than when it is fully booked). Even getting reduced revenue for this unsold inventory helps a lot. Travelzoo's specialty is providing a fast, flexible, and cost-effective solution for selling this inventory. Fast because there is a short amount of time between when the unsold inventory is known and when it can be sold. Flexible because the deals have to be quickly modified based on the level of demand. And cost-effective because these seats are being sold at very low margin, margin which advertising eats farther into.  [more]

Recs

2

Magic Formula Investing Weekly Roundup 7/29/2012

July 29, 2012 – Comments (0) | RELATED TICKERS: WDC , IPG , MHFI

Magic Formula Investing (MFI), as described by hedge fund manager Joel Greenblatt in The Little Book that Beats the Market, consists of ranking stocks by earnings yield (cheap) and return on capital (quality), adding the rankings together, and buying from the resulting lists. Below are stocks that have moved into, and dropped out of, 3 of the MFI screens used by MagicDiligence:  [more]

Recs

4

Magic Formula Investing Weekly Roundup 7/22/2012

July 22, 2012 – Comments (0) | RELATED TICKERS: HRS , MD , TZOO

Magic Formula Investing (MFI), as described by hedge fund manager Joel Greenblatt in The Little Book that Beats the Market, consists of ranking stocks by earnings yield (cheap) and return on capital (quality), adding the rankings together, and buying from the resulting lists. Below are stocks that have moved into, and dropped out of, 3 of the MFI screens used by MagicDiligence:  [more]

Recs

3

Magic Formula Investing Weekly Roundup 7/15/2012

July 15, 2012 – Comments (0) | RELATED TICKERS: JOY , AMAT , STRA

Magic Formula Investing (MFI), as described by hedge fund manager Joel Greenblatt in The Little Book that Beats the Market, consists of ranking stocks by earnings yield (cheap) and return on capital (quality), adding the rankings together, and buying from the resulting lists. Below are stocks that have moved into, and dropped out of, 3 of the MFI screens used by MagicDiligence:  [more]

Recs

2

Comparing Two Engineering and Construction Stocks

July 11, 2012 – Comments (0) | RELATED TICKERS: FLR , FWLT

One useful exercise when scanning the Magic Formula® Investing (MFI) screens is comparative analysis of stocks in the same sector, or that are direct competitors.

MFI is as much of a sector ranking tool as it is for individual stocks. It is common to see many companies from the same industry sector enter the screen at almost the same time, as macro-economic factors weigh on all participants. A few examples currently are: for-profit education (Apollo (APOL), Capella (CPLA), ITT (ESI), and DeVry (DV)), semiconductors (KLA-Tencor (KLAC)Kulicke & Soffa (KLIC), and Marvell (MRVL)), and defense (Raytheon (RTN)General Dynamics (GD), and SAIC (SAI), among others).  [more]

Recs

5

Magic Formula Investing Weekly Roundup 7/1/2012

July 01, 2012 – Comments (1) | RELATED TICKERS: HPQ , ACN , CNVR

Magic Formula Investing (MFI), as described by hedge fund manager Joel Greenblatt in The Little Book that Beats the Market, consists of ranking stocks by earnings yield (cheap) and return on capital (quality), adding the rankings together, and buying from the resulting lists. Below are stocks that have moved into, and dropped out of, 3 of the MFI screens used by MagicDiligence:  [more]

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