Orbitz Worldwide, Inc. (OWW)

I have purchased OWW :-

http://finance.yahoo.com/q?s=oww&.yficrumb=yIQAwlz5SoW

Industry: recreational activities
EPS = -3.72
EPS EST 1yr = -3.761 2yr = 0.233
PE = na Industry 20.9
PB = 3.12 Industry 1.5
PS = 0.59 Industry 1.1
P/CF = na industry 9.2
P/FCF = 34.7 Industry 11.7
Yield 0.0 Industry 0.0
Gross profit margin = 81.7 Industry 48.4
Operating margin = -34.1 Industry -7.4
Net Profit Margin = -41.9 Industry -8.4
ROA = -21.8 Industry -11.3
ROE = -153.6 Industry 0.0
Insider ownership = 1.2
Greenblatt ROC = 236.78
Greenblatt Earnings Yield = 0.00
PosFCF generic % free cash flow yield 2.88%***
Passes 11 of 17 of Mike Klein's metrics
MaxPrice = 21.80 Discount 76%**
Metrics from qtr ending 9/30/2009
Caps rank 2
http://caps.fool.com/Ticker/OWW.aspx
MC score 231

All good enough for my money. I only suggest stocks that I own !

(See posts 388/584/665/760/1051/1807/2213/3546/3755/4046/4208/4225/4345/4573/4818/5241/5242/5310/5461/5579/
5169/7651 on 'Investment Analysis Clubs / Dynamic Value Investing ' board for extra due diligence applied ). **MaxPrice is a generic version of Mike Klein's Maxprice and ROC and Earnings yields are generic versions of Greenblatt's metrics. *** PosFCF generic % free cash flow yield taken from AAII and posts 5248 and 5253

See 'Investment Analysis Clubs / Dynamic Value Investing' board and my CAPS profile for further excellent companies selling at a discount to Maxprice with excellent current metrics. CAPS only shows my selections over 100Mill (unfortunately due to restricted lower market cap applied by MF CAPS).

As stated on the 'Investment Analysis Clubs /Dynamic Value Investing' board my aim is to obtain up to 50% returns p.a. as Buffett stated he could obtain (3 times) recently. A very difficult task but you can follow along with my buys and sells on my CAPS page, where I put my money where my mouth is . If I perform well I hope you can benefit. If not , feel free to ignore my comments. CAPS allows each and everyone of us to be clinically judged on our stock picking abilities over the LONG TERM.

Please always do your own due diligence before investing.

Manucastle :o)

OWW my balls!

Great brand. Will follow Priceline.

OWW has a too high valuation compared to its sales potential. It is also loss making.

When the recession ends, travel stocks will take off. I'd rather be early than late.

I am a business analyst with a major travel agency in the Seattle Washington area.

i will be the first to say, that orbitz profit margins are likely to be very slim to non right now, but I like Orbitz for several reasons.

1. Globally, recreational travel is picking back up. People with money were sitting on the sidelines because of the imminent great depression and there is a lot of pent up demand for travel. More recently has been the swine flu which doesn't seem to be too newsworthy anymore.....

2. usability and simplicity of orbitz.com UI. It's the least busy retail travel site around. I feel overwhelmed going to priceline.com for example and seeing worthless shatner all over the place. Orbitz is clean, fast, easy and straightforward. No gimmicks, just very usable with tasteful upsells.

3. Their new agressive marketing campaign, paired with the brilliance of the "price assurance guarantee". Have you ever booked a flght and seen it go down the next week by 10,20, or 30 percent? It happens all the time and this is the first type of pricing protection I have seen in our industry outside of negotiated rates with special fare rules. They are now also applying this to hotels. Why would you book XYZ flight with priceline, expedia, etc.. for $500 when you can book on orbitz for $500 and have an assurance that any lower price will be refunded to you?

Now, just because I like the company and will probably buy some in real life, I'm not sure that their profit margins will follow their innovation. I'm sure their margins are extrmely low considering they have no booking fees. I'm guessing they make commissions and upsell ancillary items... not exactly a fortune to be made on thsi model. However, I believe that Orbitz could make an attractive buyout target for several companies in the next couple of years.

Orbitz is already low, but they recently dropped booking fees which have accounted for most of their profits in the past.

travel websites

Growth is accelerating and the company is diversyfing. The stock is well below its IPO for well over a year now.

travel is the worst

They are very widely recognized with good deals like priceline. They have enough cashflow to stay afloat during the "American Oil Crisis" and will succeed in the near future.

I’m just getting to learn the ins and outs of the stock market here, but I’m picking this stock to do well. Travel internet web sites are obviously a booming business in the past few years and will continue to be an asset in air fare deals. Especially considering that our ever rising gasoline prices will definitely influence the cost of airline tickets. I’ve heard that Orbitz has expanded into Europe. Worldwide expansion seems to be a good indicator that this company is going to be sticking around. They might be selling lower than the competitors now but I think that will be changing shortly.

should clobber priceline in the next year

It's been beaten up but has strong fundamentals and is a value play compared to PCLN.

A triple bottom is in on the technicals, the fundamentals are there, Europe business is growing and it trades at a deep discount to it's peers (PCLN, EXPE, and CTRP).

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 priceline.com 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.

Nero

Sagetrade

This company has cler direction, strong leadership, and some extremely forward moving technology.

OWW, USS, IDTC, C, PFE, XOM

overly penalized - counter cyclical economics will result in higher margins in down economy