May 24th, 2005

SpeculatingStocks.com Stock Pick: Travelzoo, Inc. (TZOO)

Price: $33.35 (long-term strong buy)

We released TZOO five times last year as a short. TZOO finally dropped significantly after hitting $110 on December 28th. TZOO is now trending higher after bottoming at the $28 level.

Travelzoo, Inc. is the Internet's largest publisher of travel offers available directly from hundreds of travel companies. They currently list more than 300 travel advertisers to over 8 million subscribers.

A whopping 51.5% of the 3.10 million TZOO float is short. A spectacular short squeeze could be on the horizon, there just needs to be a trigger.

The travel industry is returning to pre-9/11 levels and travelzoo.com is a useful resource for all travelers.

SpeculatingStocks.com Target Price: We expect TZOO to fill the gap between $40 and $50 within the next 2-4 months.