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JimVanMeerten (63.02)

Make a bid for Priceline

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August 20, 2010 – Comments (0) | RELATED TICKERS: PCLN

William Shattner as the Priceline Negotiator has done a great job in getting public recognition for this company's products. The company has experienced year over year increases of international bookings of over 59%.

If your TV has been broken you might not know Priceline.com (PCLN) pioneered a unique e-commerce pricing system known as a "demand collection system" that enables consumers to use the Internet to save money on a wide range of products and services while enabling sellers to generate incremental revenue. Using a simple and compelling consumer proposition - Name Your Own Price - Priceline.com collects consumer demand, in the form of individual customer offers guaranteed by a credit card, for a particular product or service at a price set by the customer. I have used it myself to bag a 4-Star room in St. Augustine beach for $79 plus taxes.

Wall Street brokerages have published 14 buy recommendations for this stock based on forecasts of increases in sales of 27.80% this year and 20.30% next year. The earnings estimates are even higher at a 44.00% increase this year, 21.80% next year and a 5 year projected annual EPS growth rate of 19.40%.

Technically this stock in on the move. The price hit new highs in 12 of the last 20 sessions for a 34.74% increase last month. 10 of the 13 Barchart technical indicators signal a buy for a 72% overall buy rating. The 14 day Relative Strength Index stands at 73.53 % and the stock recently traded at 297.67 well above its 50 day moving average of 227.50.

Average investor sentiment as measured by Motley Fool shows their CAPS members voting 806 to 288 that the stock will beat the market with the more experienced All Stars in agreement by a vote of 253 to 106. Fool notes that all of the last 16 articles by the Wall Street columnists they follow has been positive.

If you'd like to make a bid for Priceline consider:

1 - Barchart has an overall buy signal of 72%

2 -  Price increased in 12 of the last 20 sessions

3 - Wall Street brokerages are pushing the stock based on double digit projections of increases in both sales and earnings for the next 5 years

4 - General investor sentiment is broad and positive

5 - The company has a very aggressive TV campaign

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions in the stock mentioned at the time of publication

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