Speed up with Expedia (EXPE)
Put a little speed in your portfolio with an addition of Expedia (EXPE). It's in my S&P 500 Marketocracy fund. EXPE is a holding company that provides wholesale and retail travel services to off line retail travel agents and the public. I also follow the stock in my blog: Financial Tides
Some of its holdings include Expedia.com, Hotels.com, Trip Advisor and Hotwire. I've used them all and gotten fine results. It operates in the US, UK, Germany, France, Italy Netherlands and through investments in China. Pretty global!
The fundamentals of the balance sheet are solid and growing. Although it had a loss for 2008, it has healthy profits for the first 2 quarters of this year.
It has competion from Orbitz (OWW) and Priceline (PCLN). The stocks market cap is 7B to PCLN at 7B and OWW at only 519M. It wins in the revenue comparison with 2.9B compared to 2B for PCLN and only 800M for OWW.
As the economy recovers both business and personal travel should be increasing and the use of their services will soar.
Any stock needs some buzz to move and there are 15 analysts following this stock. Recent analysts recommendations have had 3 BUYS and 1 HOLD.
On the technical side BarChart rates EXPE as an 88% Buy with 10 out of 12 TA indicators a BUY and 2 a HOLD. Recent price action had 5 new highs in the last 20 trading sessions with 4 new highs in the last 5 trading sessions. Price movement has been 57% for the last 65 trading sessions.
Good numbers, analysts buzz good recent technical action.
Recommendation: BUY under 25 with a protective stop loss at 21.
Disclosure: I hold no position in EXPE at time of publication.
Please make your comment below or email me at FinancialTides@gmail.com