Remember
 
 
At SpeculatingStocks You Can Discover Stocks, Post Anonymously, and React to Posts. Login is Optional.
Watch for Reactions to Your Posts or React Below to Other's Posts. Discover Stocks and Market Data.
     
 

October 15, 2004

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

Stock Price: $62.37 (short-term strong short)


We most recently released TZOO as a stock pick on September 17th when it was at $72.34. By October 8th it fell to a low of $49.88. TZOO jumped this week on a three fold increase in their quarterly profit; however, the fact is that they are only making $9.1 million a quarter. They do not deserve to have a market cap of close to $1 billion.

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 7 million subscribers.

There was a $30 million private placement in the form of a PIPE to a group of institutional investors that took place about two weeks ago. TZOO shares in this deal were priced at $40. This just shows how overvalued TZOO has become.

Many traders bought on the rumor of a third quarter profit and some bought more when earnings were released. It appears that volume is dropping again.

 
     
Untitled Document