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$2.03 0.51 (33.55%)
10/13/2008 3:58 PM

Ambassadors International, Inc. (AMIE)

CAPS Rating:
*

A cruise, marine and travel and events company. The Company's cruise operations are conducted under its Majestic America Line brand.

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Avatar TMFMattyA (98.63) Submitted: 2/05/08 6:17 PM : Outperform Start Price: $10.19 AMIE Score: -56.76

AMIE is in the initial stages of a tremendous evolution in its business. Its smart management team is strategically deploying capital to turn what was once a mere shell of a company into a domestic luxury travel powerhouse. The company is on pace to earn more than a $1 a share in 2008. Throw that in with a nice 3 percent dividend yield, and my bet is that AMIE won’t trade around $12 for very long.

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Avatar dcrednek (79.24) Submitted: 2/08/08 2:12 PM

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What % of Revenues are domestic? What effect will recessionary conditions have on luxury travel? And what effect will the diminished buyer power of the USD have on growth?

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Avatar TMFMattyA (98.63) Submitted: 2/14/08 9:36 AM

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All very good questions. The thing about AMIE is that we don't really know right now what kind of company they are going to be. Remember, most of the business for the company in 2008 will be derived from new acquisitions made just recently. There is a lot of uncertainty...but that can be good, because it keeps the stock price low.

A recession would certainly have a short-term impact, but I'm banking on the idea that millions of baby boomers (who have plenty of money by the way) will be retiring over the next 10 years and will want to travel, especially within the United States (cheaper dollar, and easier for most people than going abroad). This means AMIE's business has tremendous macroeconomic opportunities in front of it.

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Avatar chk999 (99.99) Submitted: 3/12/08 3:39 PM

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I guess the market didn't like the earnings call today or something.

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