Priceline Group, Inc. (NASDAQ:PCLN)

CAPS Rating: 4 out of 5

Offering services from airline tickets to hotel rooms to car rentals, priceline.com allows buyers to name their own price.

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Member Avatar JaysRage (87.70) Submitted: 5/18/2015 12:34:06 PM : Outperform Start Price: $1,052.45 PCLN Score: +10.48

Priceline has a lot of really great things going for it. They continue to improve their network of travel participants. The additional of Open Table is a great fit for the things that Priceline is trying to accomplish. They generate huge cash flow on incredible margins, and they have a nice cash pile to facilitate continued growth investing.

If this were the end of the story, Priceline would be worth 1500 a share or more. However, Priceline is HEAVILY dependent on Europe for its revenue. The decline of the Euro, Russian imperialistic risks, along with the continued possibility of a Greece exit from the Eurozone continue to weigh on the stock in the form of risk and dampened growth.

I am not personally invested in the stock due to these risks, but I absolutely love the fundamental business.

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Member Avatar TMFWillSommers (98.49) Submitted: 5/11/2015 9:36:23 AM : Outperform Start Price: $632.35 PCLN Score: +38.65

Big drag at the moment is the strengthening US dollar against the Euro and Pound Sterling. Last quarter, gross bookings in constant currency increased 26%, but thanks to a stronger dollar sales only increased 12%. As 94% of operating income is earned outside the US, recent currency movements have really hurt (and could hurt in the upcoming few quarters or years). But, setting that aside,

The business is still growing at a nice rate, addressing a huge market, buying back shares, investing in its technology, adding hotel partners, etc... Over time, I think that currency fluctuations are likely to even out, so I think this should be a market beater over the next 3-5 years from today's price of around $1200/share, which is 26-times last year's earnings. For patient investors willing to wait, this looks like a good oppty.

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Member Avatar Haugurafpeningum (28.71) Submitted: 5/4/2015 7:26:30 AM : Outperform Start Price: $1,277.88 PCLN Score: -6.26

Tim Beyers. Improving OBV

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Member Avatar lou614 (< 20) Submitted: 4/30/2015 9:11:56 AM : Outperform Start Price: $1,247.75 PCLN Score: -4.63

financials look good, plenty of cash on hand, and its moving to expand into china. looks like a winner to me.

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Member Avatar andrewtraylor (41.50) Submitted: 4/2/2015 4:52:59 PM : Outperform Start Price: $1,185.64 PCLN Score: -1.78

Outstanding growth, margins, & ROE. BUY IT

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Member Avatar Amoeba17 (80.76) Submitted: 4/2/2015 11:25:09 AM : Outperform Start Price: $1,157.82 PCLN Score: +1.24

With the economy improving, more people are going to be traveling. Many of them will use Priceline to plan their trip. I like this while the economy is stable.

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Member Avatar Darnedifino (39.65) Submitted: 3/3/2015 6:38:55 PM : Outperform Start Price: $1,233.50 PCLN Score: -3.26

Leader in online travel services

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Member Avatar TMFPencils (99.83) Submitted: 2/23/2015 1:53:26 PM : Outperform Start Price: $1,204.10 PCLN Score: -0.52

Priceline's financials reflect the financial domination of this business. $2.8 billion in FCF produced in 2014 (excluding acquisitions), more than doubling the $1.3 billion produced by the company in 2011. Gross margins and profit margins have consistently increased over the same time period to all-time highs.

The gross margin has grown to 89.8% in 2014 from 70.7% in 2011. The profit margin expanded to 28.7% in 2014. Just staggering profitability and ballooning free cash flow production.

Priceline's global booking and reservations network is growing -- and profitability/cash production right along with it -- and I struggle to find reasons why the stock won't continue to handily outperform the market in the coming years. The P/E of 26 is quite reasonable thanks to short-term fears about a sluggish European economy. Look at the forest, not the trees. Outperform.

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Member Avatar TMFEarlyRiser (57.27) Submitted: 2/16/2015 8:17:20 AM : Outperform Start Price: $1,115.00 PCLN Score: +6.67

When I think about companies that I'm willing to pay a P/FCF of 20x or higher, the company must have high ROE supported by multiple sources of moat, and high growth rates of revenue and FCF. Priceline fits the bill. It has a strong moat protected by brand and network effects, it generates ROE in excess of 30%, it turns about 20% of revenue into FCF, and those revenues are growing at 20%+ per year. Priceline's stock trades at about a 4% FCF yield, which is double the risk free rate and FCF is growing at least 15% per year, so I expect a 20% annualized return going forward for the next few years.

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Member Avatar TMFBoiseKen (93.93) Submitted: 2/14/2015 8:55:55 AM : Outperform Start Price: $1,115.00 PCLN Score: +6.67

I can't believe it took me this long to get around to giving this company the green thumb. Reasons are simple -- trading at discount to expected future earnings, great balance sheet, mega brand.

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Member Avatar Kidkerner (51.85) Submitted: 2/8/2015 3:39:50 PM : Outperform Start Price: $1,020.65 PCLN Score: +14.39

Highly profitable, strong continued growth.

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Member Avatar elric11 (< 20) Submitted: 2/5/2015 7:02:43 PM : Outperform Start Price: $1,027.56 PCLN Score: +14.50

Industry Growth + Revenue Growth Faster than the Industry + High Gross, Operating, & Net Margin = Outperforming Stock

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Member Avatar Bobmoll36 (51.68) Submitted: 2/5/2015 4:09:23 PM : Outperform Start Price: $1,027.56 PCLN Score: +14.50

global reach FOR YEARS TO COME

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Member Avatar TheDumbMoney (50.90) Submitted: 1/26/2015 10:59:49 AM : Outperform Start Price: $1,038.64 PCLN Score: +12.46

Bought 3 shares, at $1036.12, in IRA, no commission.

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Member Avatar davidm9999 (66.04) Submitted: 1/20/2015 9:43:55 AM : Underperform Start Price: $1,007.08 PCLN Score: -14.18

PCLN is a website masquerading as a company. It has not clout, only advertising and web design. Can be easily replicated (Hotels.com, Expedia, Travelocity, Orbitz, Kayak) and does not deserve rich valuation. Fair price is something closer to $180/share

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Member Avatar CMFMLove (42.13) Submitted: 1/19/2015 4:00:33 PM : Outperform Start Price: $1,016.45 PCLN Score: +13.66

Priceline has descended into value territory. The long-term story is still strong, and any weakness in 2015 will be a buying opportunity.

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Member Avatar ElCid16 (97.27) Submitted: 1/16/2015 12:54:15 PM : Outperform Start Price: $997.01 PCLN Score: +14.06

5-yr Rev growth: 29%
1-yr Rev growth: 24%
5-yr EBIT growth: 49%
1-yr EBIT growth: 29%
5-yr EPS growth: 38%
1-yr EPS growth: 33%

TTM P/E: 22
TTM P/E (ex-cash): 20

"The P/E ratio of any company that's fairly priced will equal its growth rate"

- Peter Lynch

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Member Avatar tommyty (46.04) Submitted: 1/3/2015 10:58:21 AM : Outperform Start Price: $1,138.37 PCLN Score: +1.84

I think the share price scares too many people. Priceline is firing on all cylinders. Tough to determine how much longer these ridiculous growth numbers continue though

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Member Avatar TMFCavalier (72.83) Submitted: 1/2/2015 11:06:17 AM : Outperform Start Price: $1,134.97 PCLN Score: +2.40

Priceline had a pretty lackluster 2014 but I think its future is still incredibly bright. The stock currently trades at a P/E around 18.5x 2015 consensus earnings, which seems pretty reasonable for a company that has grown revenue and net income at a 30% and 40% CAGR over the last 5 years, respectively. Analysts still think the company can grow revenue at 20% a year for the foreseeable future, which I think could be an underestimation. Priceline accounts for only 10% of European bookings and less than 5% of global travel bookings, so there is a lot of room for more growth. Long live the Priceline Negotiator!

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Member Avatar lebbins (54.20) Submitted: 12/29/2014 11:37:45 AM : Outperform Start Price: $1,161.25 PCLN Score: +2.11

Should trend up in the next 2 years - 2015-2016. Going strong with Booking.com but the online travel space is too competitive and dynamic. To review after 2 years.

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