TZOO: TravelZoo - Divestiture Sets Up Investment Opportunity

Posted on January 28, 2010

TravelZoo (TZOO) is interesting at current prices ($10.75). With the company’s divestiture of its money-losing Asian operations late last year, and the strong growth in subscribers in the remaining US and Europe operations, the company’s bottom-line could see a surge in 2010. The improving year-over-year comparisons, coupled with the low float on the stock, should benefit current shareholders. On the risk side, the company has no debt, a highly defensible business model (I view high traffic websites, with long histories, and a large email list, as some of the most defensible businesses around, despite some people’s belief that these businesses are easily replicated - they are not), and though the stock price has rebounded sharply from the financial crisis, as many other stocks, the price has still basically gone nowhere for years.

Disclosure: Affiliates of Envoy Global Research, and its principals, own shares in TZOO. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.

Comments and Discussions

The section below is intended to serve as a forum for intellectual debate about particular investment ideas or theories. Please refer to this section for any updates on a particular investment idea. If you have your own thoughts, please feel free to add them. We appreciate your feedback.

Leave a Comment

If you would like to make a comment, please fill out the form below. Please note that we only require an email for editing purposes. We will NEVER publish your email or use it in any way.

Name (required)

Email (required, but NEVER published)

Website

Comments

Subscribe for FREE

Enter your email below to receive free research summaries.

Enter your email address:

RSS Feeds:



Add to Google

Quick Links


Recent Comments:

  • Yehuda Fruchter Hi Guy, Thanks. No idea how high INAP can go, if they execute well on the colo side. Colo... >>Read More

  • Guy Wiggins Your sense of timing with many of your recommendations, including INAP, NAVI and VG is... >>Read More

  • Yehuda Fruchter Hi Guy, With regards to VG, I am in complete agreement. The company's toxic debt is... >>Read More

  • Guy Wiggins Hi Yehuda, wanted your thoughts on two things: 1) The sale of the Navisite Lawson/Kronos... >>Read More

  • jay freeman The Fantasy of Finance- Very good ..... an entire MBA in 5 paragraphs.....For those who may... >>Read More

  • Disclaimer:
    This site may include market analysis and we may own shares in the stocks mentioned in our reports. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.