TZOO - Sector: Services---Industry: Internet Information Providers

[hectorgr]

WOW closed today at 94.22 after first quarter report    Geting close to $100   

On Thursday April 21, 2011, 7:23 pm EDT
NEW YORK (AP) -- Shares of Web travel deal company Travelzoo Inc. surged Thursday after the company reported record revenue for the first quarter, and adjusted profit that topped expectations.

Travelzoo sends out Internet newsletters and coupons for travelers, and operates several Web sites, including Travelzoo.com. In North America and Europe, the company had 19.9 million subscribers at the end of the first quarter.

"Subscribers grew by over 1 million, the second best performance in our company's history," CEO Chris Loughlin said in a statement.

The company posted a loss of $14 million, or 85 cents per share, compared with net income of $2.5 million, or 15 cents per share, a year ago. Travelzoo said the loss was linked to a $20 million settlement it made April 12 to end a shareholder dispute in Delaware.

The company said the disagreement centered around shares of stock that went unclaimed after a merger in 2002. Travelzoo said the facts of the case remain in dispute, but it wanted to pay the cash settlement to get the litigation behind it.

Excluding that settlement, Travelzoo said its adjusted net income totaled $6 million, or 37 cents per share, nearly triple what it reported in the prior-year period. Revenue rose 30 percent to $37 million.

The company said its North American revenue grew 23 percent in the quarter to $27.6 million -- the fastest pace in four years-- while its European revenue rose 53 percent to $9.4 million. The company said that its European business saw the highest quarterly subscriber growth ever.

On average, analysts expected earnings of 28 cents per share on revenue of $33.4 million, according to FactSet.

The company's earnings sent its stock up $20.35, or 28 percent, to close at $94.22.

[setravis]

Travelzoo Short Squeeze in Play...

Travelzoo (NASDAQ:TZOO) is an old momo stock which has come back to life; I have been watching the past 4-5 months in a bit of awe. This is another example of where valuation simply does not matter (until one day it does), and trying to figure out a top based on traditional metrics has created immense pain for the 'smart money'.  TZOO (NASDAQ:TZOO) is one of the most heavily shorted stocks in the market, and for obvious reasons – in mid March it traded at 40x-ish forward estimates on 2011.  That was when it was $45.   After tripling from $15 at the time Bernanke promised us QE2 in late August.  Over extended after a 200% run?  Not so fast.



With today's 24%+ gain, the stock has doubled yet again in just over a month from $45 to $90.  From the original $15? 500% gain.

The catalyst today is an earnings report, in which the company posted a solid beat of 9 cents; 37 cents v 28 cent expectation.  Even if we take the year end analysts estimate of $1.17 and say Travelzoo will make $1.40 (aggressive assumption) we are now talking a forward PE of 65.  But I guess in a market where Chinese internet stocks are trading at Price to Sales of 150, everything else is a bargain.  It's the 'relative valuation' game, 1999 style.  To reiterate, no one is saying these companies are not growing... we have simply returned to an era where no valuation is too high for a select group of about 50 companies.

For the quarter, the company posted revenue of $37 million and non-GAAP profits of 37 cents a share, well ahead of the Street consensus at $33.4 million and 28 cents. Revenue was up 30% from a year ago.
The company said North American revenue was up 23%; European revenue was up 53%.
Travelzoo said it had 19.9 million unduplicated subscribers to its e-mail newsletters, up 6% sequentially and 12% from a year ago.
In North America, total unduplicated number of subscribers was 14.8 million as of March 31, 2011, up 7% from March 31, 2010 and up 4% from December 31, 2010. In Europe, total unduplicated number of subscribers was 5.1 million as of March 31, 2011, up 29% from March 31, 2010 and up 11% from December 31, 2010.
"We kicked off 2011 with record revenues and record adjusted operating income. Subscribers grew by over 1 million, the second best performance in our company's history," said Chris Loughlin, CEO of Travelzoo (NASDAQ:TZOO). "We doubled adjusted operating income year-over-year as we continued to ramp up Local Deals, which are now live in 48 markets in 6 countries. North America revenues grew at the fastest pace in over 4 years. Europe saw the highest quarterly subscriber growth ever and returned its first significant quarterly profit."
Competitors to Watch include: Expedia (NASDAQ:EXPE), priceline.com (NASDAQ:PCLN), Orbitz (NYSE:OWW), eLong (NASDAQ:LONG), Ctrip.com (NASDAQ:CTRP), Google (NASDAQ:GOOG), Deltar Air Lines (NYSE:DAL), Alaska Air Group (NYSE:ALK), US Airways (NYSE:LCC), United Continental (NYSE:UAL), Southwest Airlines (NYSE:LUV), Hawaiian (NASDAQ:HA), JetBlue (NASDAQ:JBLU) and AirTrain (NYSE:AAI).

Travelzoo Inc. (NASDAQ:TZOO) is a global Internet media company. With more than 22 million subscribers in North America, Europe, and Asia Pacific and 23 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo's deal experts review offers to find the best deals and confirm their true value.
Disclosure : No position

Follow the latest from earnings season here>>
http://wallstcheatsheet.com/category/earnings-trading-markets

[hectorgr]

Time to put this one again in the watch list. Insider selling seems to have ended and chart looks attractive. Lets wait for a BO over 60.    A volume increase could see short´s squeeze 

[hectorgr]

Take a look at Short Interest data:

http://www.schaeffersresearch.com/streetools/filters/equity_si.aspx?TICKER=tzoo

Next update june 24th

[hectorgr]

Running pretty well. Current pivot 63.92. 
Resistances at: 65.34    67.68    69.10    With volume over 1.5 M could hit 72
Although holding a long position, pullbacks are usual in this stock (ideal for daytrading).

[hectorgr]

Travelzoo Inc. will host a conference call to discuss the Company's financial results for the second quarter ended June 30, 2011. Travelzoo Inc. will issue a press release reporting its results before the market opens on July 21, 2011. 
     
WHEN    Thursday, July 21, 2011 at 11:00 AM ET 
     
HOW:    A live webcast of Travelzoo's Q2 2011 earnings conference call can be accessed at http://ir.travelzoo.com/earnings.cfm. The webcast will be archived within 24 hours of the end of the call and will be available through the same link. 
     
CONTACT:    Investor Relations 
   Glen Ceremony, CFO, Travelzoo Inc.     [email protected] 
============================================================
After cup&handle resistances are 78.43    82.02     84.55  nevertheless KEEP IN MIND ABOVE MENTIONED DATE.

[hectorgr]

If S&P helps on monday and with some volume increase, TZOO could hit $80 this week or even $90 if earnings exceed expected levels. Going through earnings is always a risk so suggest taking partial profits on the way up.

Best luck to all