priceline.com Incorporated (NASDAQ:PCLN)

I don't think the crazy run they are on will last...

priceline. ecom
good company, strong growth, 5B. Good FA
strong BBB

beats all prices

I love the product and the business with no real inventory, potential for gross disgustingly high margins, but how much do we pay for the portal that provides the one-off purchase for leisure travellers? I sense a price growth stall due to the run-up in the past year of the PE and a normalization as in the e-banking sector once the dust settles from the dog fight between Orbitz, Expedia and Priceline for your summer travel.

PCLN is technically overextended and fundamentally no more than fairly valued, therefore a short term sell.

It may have less cap than other companies but those companies like expedia/orbitz/etc are not a real competition. If you are serious about getting hotel discounts, there is only one site: Priceline. They are alone in this area and they will continue to grow.

Continued growth in Eurpoe where there is much less competition at this point.

The leader in travel will continue to roll.

IBD 100 Top 25, 4/14/2007

hot sector pick

Breakout stock: Ready to run!

Priceline.com has shown strong growth over the past few years, especially in the oversea markets. This growth is likely to continue into 2007-2008. It is also a takeover target at a cheap price.

VL

Priceline.com Inc is an internet based travel company, offering broad range of travel services, including airline tickets, hotel accommodations, car rentals, cruises and vacation packages. Priceline.com offers an opaque solution called “Name Your Own Price”, which gives consumers the ability to bid for travel services at discounted prices, depending on their own budget. Agency, merchant revenues and advertising are the sources of revenue for the company.

The company expanded its operations in UK through acquisition of Active Hotels, one of Europe's leading Internet hotel reservation services in 2004. With acquisition of Bookings B.V, the company further expanded throughout Europe in 2005. It has already evidenced strong triple digit growth rate in Europe based bookings from past two years on account of positive e-commerce trends and growing repeat business. This trend is likely to continue further. Priceline.com has identified Eastern and Southern Europe as most immediate opportunities for expansion.

The percentage of travel booked online continues to grow faster than the online travel market, with penetration rates expected to reach close to 40% in the US and 27% in Europe by 2007 from 29% and 14% respectively in 2005. To build momentum in domestic travel, Priceline.com is aggressively working on enhancing its offerings like personalized emails, to deliver more personalized experience to its customers. A long-term agreement has been announced with Northwest Airlines and the company is also in talks with other low cost airlines to provide its customers with low cost airline travel. Holding a strong position in the online travel industry and opportunity to target 2nd and 3rd tier cities, Priceline.com is expected to Outperform with strong results.

High ROE. Zack's pick.

takeover canidate

airlines will improve, thus creating more revenue for pcln. more products and good advertising will bring in travelers.

good earnings and revenue momentum

The name and service are great. They are growing and adding new customers. They should continue to addmore in thie busy season.