Player Avatar NeroSagetrade (90.96) Submitted: 12/22/2007 9:58:15 PM : Outperform Start Price: $8.98 OWW Score: -50.00

Orbitz Worldwide has performed the worst of the major airline internet traffic companies over the last six months and I think we've finally hit a point where their value relative to competitors looks attractive. Orbitz has expanded nicely into Europe and is moving further away from getting all of its revenues within the US. Margins are high in this business as long as they can keep their booking fees and they look likely to gain profitability in 2008. At just 12 times earnings and 1.00 times book they seem to be a bargain compared to at 23 times earnings and 8 times book and even expedia but you have to keep in mind how quickly EXPE and PCLN are growing. Keep your expectations limited and there's no reason OWW doesnt rebound 30-45% in 2008.


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