Expedia, Inc. (EXPE)

Travel will be the top list for consumers during the next few months and then the stock would settle

Good time to jump in, looks attractive in comparison to PriceLine, similar growth rates but much lower PE. Things could slow in the travel industry, but if there is a retreat in Oil/Gas prices this year, this stock should bounce......hopefully in the right direction which is up. I see more upside than downside.

As the economy grows with the election nearing you can expect an increase in the vacations by middle america who will look for the best place to find deals. Hence...

book value is higher than market cap.

down with the old way of traveling!

Balance sheet shows $1.9 billion negative tangible value, current assets minus current liabilities is negative $800 million, cash flow for last year break even only because they increased liabilities. They have a small profit on paper but not nearly enough to cover the debt and the $800 million they need to come up with to cover the liabilities coming due in the next year. Add to this the declining economy and increasing competition and it looks bad for Expedia. To raise funds, they need to increase debt a lot or issue stock, both of which should drive the price down.

The stock is undervalued and has a lot of room for growth

EXPE is the 800 pound gorilla when it comes to online travel.
However, the consumer is overstreched and business travelling has fallen victim to cost saving efforts and alternatives (amongst others CISCO's video conferencing gear).
As I see it, the cake is hardly growing during the next 1 to 2 years. and the smaller wolves (PCLN, OWW, Travelocity) are still hungry and agressive (see booking and cancellation fee waving).
What can be worse than a price war and / or losing share in a shrinking market and at the same time having Barry Diller as chairman, who seriously belives that owning 9+ million shares renders the company to him as a private toy?
(Yes, I am talking about his last "self-buy-out" attempt, which if it had succeded, would have damaged the balance sheet for a pretty long time, if not to say irreparably).
I think, the run up of nearly 150% since March was driven by sentiment rather than by fundamental. And sentiment can change very fast. Alas let's shorten EXPE !

a good travel website

Great user experience via Website. Good advertising and brand. Going global to meet international travel needs. Looks to be a win long-term

Expedia is selling for half its fair value based on discounted free cash flows. The free cash flows are relatively consistent, and the company's ROIC at 14% is well in excess of its cost of capital, so it's adding value. Their new European business offers a growth kicker, because use of services like Expedia's is relatively new there. The huge discount to fair value seems to overdiscount any risks the company faces.

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Zacks Rank 1-StrongBuy, Recommend Outperform, Industry Rank 59 / 217, Target 27.00, Avg Target of 16 analysts 29.21
Floor 22.10

Tough environment to operate in, but the internet travel market is still growing. Expedia's balance sheet is strong enough to wait out better times. I prefer PCLN but EXPE is trading at lower multiples, so both should outperform S&P.

This stock has always done well during January earnings season.

At the beginning stage of a massive 42% buyback program, this duck is asking to be plucked! Can you say takeover target!! $38 - $42/share

Nobody is going overseas. Price of flights are way too high and the value of the dollar is way too low.

this one is a value play.

MFI following, all have negative Fool ratios but impressive 3 month gains