BloggingStocks

Priceline.com (PCLN) pulled lower by analyst commentary

Brent Archer — 2008-06-30T13:11:00+00:00

Filed under: Major movement, Analyst reports, Bad news, Industry, Expedia Inc (EXPE), Options, Technical Analysis

Priceline.com (NASDAQ: PCLN) shares are falling today after an analyst at Citi Investment Research reiterated his hold rating on PCLN and dropped his price target to $142, citing weakness in European travel. Citi also removed competitor Expedia (NASDAQ: EXPE) from its Top Picks Live list, cut the price target on EXPE as well. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on PCLN.

After hitting a one-year low of $59.50 in August, the stock hit a one-year high of $144.34 in May. This morning, PCLN opened at $119.78. So far today the stock has hit a low of $114.38 and a high of $121.95. As of 12:10, PCLN is trading at $117.95, down $7.18 (-5.7%). The chart for PCLN looks neutral and improving, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $155 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in seven weeks as long as PCLN is below $155 at August expiration. PCLN would have to rise by more than 32% before we would start to lose money. Learn more about this type of trade here.

PCLN hasn't been above $145 at all in the past year and has shown resistance around $132 recently. This trade could be risky if the company's earnings (due out in early August) are a positive surprise, but even if that happens, this position could be protected by resistance PCLN might find around $140, where it topped out in May.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in PCLN or EXPE.

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Closing Bell: End of day buyers again mask mixed day

Jon Ogg — 2008-05-28T16:12:00+00:00

Filed under: Expedia Inc (EXPE), Dow Chemical (DOW), Polo Ralph Lauren'A' (RL)

We saw another late day move save the markets today from looking like just one more mixed post-holiday trading session. The highly volatile durable goods orders came in at -0.5% for April, based partly on severe declines in aircrafts and autos. Any reprieve in oil was just that, some reprieve but no cure. We also saw the 10-Year Treasury cross back above that 4.00% threshold again. FOMC governor Mishkin also announced that he would retire in August, although this was non-moving for the market. Below are the unofficial closing bell levels:

DJIA 12,594.84 (+46.49)
S&P500 1391.01 (+5.66)
NASDAQ 2486.70 (+5.46)
52-WEEK LOWS
TOP 10 ANALYST CALLS

Akeena Solar Inc. (NASDAQ: AKNS) saw a monster volume spike early on after boutique research firm Kaufman Bros. initiated coverage on the speculative solar stock with a Buy rating. More interesting than the research call itself was the overall level of volume right at the open that saw follow-on interest throughout the day as shares were up nearly 16% at $6.83 in the final minutes today.

American Eagle Outfitters (NYSE: AEO) saw a 9% rise by the final minutes of the trading day to $18.79 after its earnings came in above some expectations.

Dow Chemical Co. (NYSE: DOW) shares were up almost 1% at $40.60 in the final minutes today after the chemical maker said it was going to raise its prices on all product groups by up to 20% starting on June 1.

Expedia Inc. (NASDAQ: EXPE) saw a 7% share rise to $23.37 by the final minutes of the trading day as rumors circulated that Barry Diller was considering taking it private.

KeyCorp (NYSE: KEY) saw shares down over 11% at $19.45 in the final minutes today after the company increased its loan loss forecasts.

Polo Ralph Lauren Corp. (NYSE: RL) shares were up 11% in the final minutes today at $68.57. The company beat earnings expectations and guided in-line for the year ahead.

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Option Update: Expedia call volume heavy on rumors of Barry Diller LBO

Paul Foster — 2008-05-28T11:55:00+00:00

Filed under: Expedia Inc (EXPE), Options

Expedia, Inc. (NASDAQ: EXPE) is recently up $1.77 to $23.51. Shares are higher on rumors that Barry Diller wants to take EXPE private.

EXPE has a market cap of $6.3 billion with long term debt of $740 million and cash of $697 million. EXPE reported 2007 annual revenues of $2.6 billion. EXPE call option volume of 12,488 contracts compares to put volume of 1,045 contracts. EXPE June option implied volatility of 45 is above its 26-week average of 37 according to Track Data, suggesting larger risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Priceline.com (PCLN): Price defines bullish 'pennant' consolidation

Larry Schutts — 2008-05-15T12:47:00+00:00

Filed under: Earnings reports, Expedia Inc (EXPE), Technical Analysis, Stocks to Buy

Priceline.com (NASDAQ: PCLN) is an online travel agency. It offers a range of services, including airline tickets, hotel rooms, car rentals, vacation packages and cruises, as well as destination and travel insurance services. The company operates a Name Your Own Price system, which allows users to make offers for travel services at prices they set. It also markets fixed-price travel products and offers various online financial services. Expedia (NASDAQ: EXPE) is a major competitor.

The firm pleased investors last week, when it reported Q1 EPS of 76 cents and revenues of $403.20 million. Analysts had been expecting 60 cents and $377.17 million. Gross travel bookings increased 76% yr/yr, a result above company guidance of 60-65%. Pro forma gross profit rose 74.7% yr/yr, versus guidance of 55-60%. Management predicted FY08 EPS of $5.25-$5.65 ($5.12 consensus).

The stock price popped on the news and has since been consolidating the gain in a bullish "pennant" pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with three "strong buys", four "buys" and seven "holds". Analysts expect a 26% growth rate, through the next year. The PCLN Sales Growth rate (33.78%), EPS Growth rate (130.30%), Return on Assets (15.06%), Return on Investment (23.41%), Return on Equity (39.43%), Revenue per Employee ($1.14M) and Net Income per Employee ($147.56k) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, the stock has traded between $53.80 and $144.34. A stop-loss of $119.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.

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Expedia (EXPE) should see improving margins

Brent Archer — 2008-04-03T13:30:00+00:00

Filed under: Analyst reports, Good news, Industry, Expedia Inc (EXPE), Options, Technical Analysis

Expedia Inc. (NASDAQ: EXPE) shares are trading relatively flat today even though an analyst at Thomas Weisel Partners said in a note to investors that online travel sites like EXPE and Orbitz (NYSE: OWW) have quietly boosted booking fees for flights on major airlines, which is likely to improve margins at the online travel companies. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on EXPE.

After hitting a one-year high of $35.28 in October, the stock hit a one-year low of $20.18 in March. EXPE opened this morning at $24.85. So far today the stock has hit a low of $24.85 and a high of $25.38. As of 12:15, EXPE is trading at $25.17, up 0.04 (0.2%). The chart for EXPE looks neutral and improving, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just three and a half months as long as EXPE is above $20 at July expiration. Expedia would have to fall by more than 20% before we would start to lose money. Learn more about this type of trade here.

EXPE hasn't been below at all in the past year and has shown support around $21 recently. This trade could be risky if the company's earnings (due out in early May) disappoint, but even if that happens, that position could be protected by support the stock might find just above $20, where it bottomed out a few weeks ago.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in EXPE or OWW.

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Priceline.com (PCLN) lifted by of Chinese partnership

Brent Archer — 2008-03-24T13:55:00+00:00

Filed under: Major movement, China, Expedia Inc (EXPE), Options, Technical Analysis

priceline.com Inc. (NASDAQ: PCLN) shares are trading higher after the company announced on Friday that it has agreed to a one-year partnership with Chinese classified information search engine Kooxoo.com. Under the deal, PCLN will gain data access to over 8,000 hotels in China, which could give it a leg up in international bookings over competitors Expedia (NASDAQ: EXPE) and Orbitz (NYSE: OWW). If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on PCLN.

After hitting a one-year low of $52.00 last March, the stock hit a one-year high of $129.24 in February. PCLN opened this morning at $119.48. So far today the stock has hit a low of $119.04 and a high of $128.75. As of 12:30, PCLN is trading at $127.87, up $9.24 (7.8%). The chart for PCLN looks bullish and steady, while S&P gives the stock its lowest 1 Star (out of 5) strong sell rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $70 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make a 6.4% return in just four months as long as PCLN is above $70 at July expiration. Priceline would have to fall by more than 46% before we would start to lose money.

PCLN hasn't been below $70 since August and has shown support around $110 recently. This trade could be risky if the US economy gets even weaker in the coming months, but even if that happens, this position could be protected by the support the stock might find just above $90 from its 200 day moving average.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in PCLN, EXPE, or OWW.

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Priceline.com (PCLN): Shares consolidate in bullish 'flag'

Larry Schutts — 2008-02-28T11:03:00+00:00

Filed under: Earnings reports, Expedia Inc (EXPE), Technical Analysis, Stocks to Buy

The firm pleased investors earlier in the month, when it reported Q4 EPS of 96 cents and revenues of $334.9 million. Analysts had been expecting 84 cents and $329.3 million. In discussing the solid quarter, the CEO emphasized continued momentum in growth of gross bookings. International growth accelerated to 113% year over year and the domestic growth rate increased 24% sequentially. Management also guided Q1 EPS to 50-60 cents (53 cent consensus) and FY08 EPS to $4.80-$5.10 ($4.90 consensus).

The stock price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with three "strong buys", five "buys" and six "holds". Analysts expect a 25% growth rate, through the next year. The PCLN EPS Growth rate (113.33%), Return on Assets (13.20%), Return on Investment (19.99%) and Return on Equity (33.53%) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, the stock has traded between $49.80 and $129.24. A stop-loss of $104.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.

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Analyst downgrades: GM, F, DB and CS

Laurie Pasternack — 2008-02-06T10:00:00+00:00

Filed under: Analyst upgrades and downgrades, Bad news, Ford Motor (F), General Motors (GM), Expedia Inc (EXPE)

MOST NOTEWORTHY: General Motors, Ford, Deutsche Bank and Credit Suisse were today's noteworthy downgrades:

Bear downgraded General Motors Corporation (NYSE: GM) to Underperform from Peer Perform and Ford Motor Company (NYSE: F) to Peer Perform from Outperform citing deterioration in the automotive consumer's ability to purchase vehicles.
ABN Amro downgrade Deutsche Bank AG (NYSE: DB) to Sell from Hold and Credit Suisse Group (NYSE: CS) to Hold from Buy on concerns of slowing revenue growth amid the subprime crisis.

OTHER DOWNGRADES:

FormFactor Inc (NASDAQ: FORM) was lowered to Neutral from Buy at Broadpoint.
National Financial Partners Corp (NYSE: NFP) was downgraded to Neutral from Buy at Merrill.
Morgan Stanley lowered Expedia Inc (NASDAQ: EXPE) to Underweight from Equal Weight.

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Analyst upgrades: TMA, EXPE and PER

Laurie Pasternack — 2008-02-06T09:53:00+00:00

Filed under: Analyst upgrades and downgrades, Good news, Estee Lauder (EL), Expedia Inc (EXPE)

MOST NOTEWORTHY: Thornburg Mortgage, Expedia and Perot Systems were today's noteworthy upgrades:

Jefferies upgraded shares of Thornburg Mortgage Inc Corp (NYSE: TMA) to Buy from Hold as they believe the stock is at an inflection point, characterized by accelerated earnings and dividend growth.
Expedia Inc (NASDAQ: EXPE) was upgraded to Outperform from Neutral at Credit Suisse, as they believe the company is well-positioned to benefit from global e-travel and media opportunities, strong free cash flow, and attractive valuation.
Perot Systems Corporation (NYSE: PER) was upgraded to Sector Perform from Underperform at RBC Capital following its Q4 report.

OTHER UPGRADES:

HSBC raised Swiss Reinsurance Company (OTC: SWCEY) to Overweight from Neutral.
The Estee Lauder Companies Inc (NYSE: EL) was upgraded to Equal Weight from Underweight at Lehman.
Cantor upgraded Genomic Health Inc (NASDAQ: GHDX) to Buy from Hold.

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How to catch these four falling knives (GRMN, MELI, FSLR, EXPE)

Timothy Sykes — 2008-01-18T10:10:00+00:00

Filed under: Major movement, Expedia Inc (EXPE), Stocks to Buy, Garmin Ltd (GRMN)

Experience has taught me that catching falling knives in the stock market is incredibly dangerous, but some of these speculative names are really beginning to test my resolve. So I thought I'd share them with you.

Investors have been punishing these plays not because business has fallen off a cliff, but because they are some of the most speculative stocks around -- other than penny stocks -- and in this kind of market environment, investors prefer safety. That creates opportunity, if you're willing to take on some risk. After all, these companies still have solid business fundamentals, so there will be a bottom somewhere, and I think we're getting very close to it here. For now, put these on your watchlist, for when they do bounce, they're going to bounce hard, think 15-20% within days.

Garmin (NASDAQ: GRMN) -- At $64, this navigation system maker is down 35% on the year, but revenue growth is far greater than its current P/E of 15. Sure, there's some margin concerns, but the chart has solid support at $60.

Mercadolibre (NASDAQ: MELI) -- It seems as if it was just a few weeks ago when this stock was being crowned the eBay (NASDAQ: EBAY) of Latin America and the stock was making new highs. Oh wait, it was -- the stock has nearly completed a roundtrip from $40 to $80 back to $45 all within one month! Sure, it may be hurt by a global slowdown, but its current forward P/E of 80 is a lot better than 160, and the chart has solid support at $40.

First Solar (NASDAQ: FSLR) -- At $167, this solar leader is more than $115 off its December highs! Oil prices are down and solar stocks have become quite unfashionable, but this company's business is still booming. It's got support in the low $150s.

Expedia (NASDAQ: EXPE) -- At $23, this online travel company's stock is down 27% on the year, but has support at $20. Due to the likely decrease in consumer travel spending, this is my least favorite to play for a bounce.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund. DISCLOSURE: At time of publication, writer held no positions in stocks mentioned.

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CEO of the year, 5 surprise stocks & 10 consumer-friendly credit cards - Today in Money 12/6

Allan Halprin — 2007-12-06T09:07:00+00:00

Filed under: Wal-Mart (WMT), Coca-Cola (KO), PepsiCo (PEP), Amazon.com (AMZN), McDonald's (MCD), AT and T (T), Krispy Kreme Doughnuts (KKD), Money and Finance Today, Bristol-Myers Squibb (BMY), Costco Wholesale (COST), Expedia Inc (EXPE), Toll Brothers (TOL), Genentech Inc (DNA)

In the News:

· Bush to Unveil Plan to Help Strapped Homeowners

· Wal-Mart November Sales Rise, Beating Estimates

· Coca-Cola Names COO Muhtar Kent as Next CEO

· Hope Grows for Half-Point Rate Cut

· Toll Brothers Drops to 4th Quarter Loss

· Bank of England Cuts Interest Rates

· Bristol-Myers to Eliminate 4,800 Jobs

· Genetech's Gamble

· Krispy Kreme Loss Shrinks

· Bic Wants to Flick Your Phone

· Lawmakers Seek More Food-Safety Oversight

· AT&T Flings Cellphone Network Wide Open

CEO of the Year
Coming into his own in his third year at the helm of McDonald's, Jim Skinner has made a deep impression. The evidence is on the bottom line, on the menu and on employees' lapels. Other finalists for CEO of year are Indra Nooyi of PepsiCo, Jeff Bezos of Amazon, Michael Ahearn of First Solar and Terri Lanai of MGM Mirage.
CEO of the Year 2007 - MarketWatch
Also: Worst CEO of Year Is Sears' Eddie Lampert

5 Stock Surprises of 2007
These companies should see continuing 2008 growth despite market and economic woes. They are Coca-Cola, Costco, Expedia, Eaton Vance and Chicago Bridge & Iron.
Five Stock Surprises for 2007 - Kiplinger.com

New Rate Freeze May Help Borrowers Bear ARMs
If you're a homeowner sitting with an adjustable rate mortgage that is about to reset to a much higher rate, what should you do? For now, wait to see what help the government will bring.
Homeowners may benefit from relief plan - Bankrate.com

Gift Returns: New Rules Require New Tactics
About 40 percent of Americans take back at least one gift after the holidays. If you find yourself in line to return a gift this season, you're apt to discover that store policies have become stricter. Restocking fees for opened boxes or missing packaging are increasingly common, and not just for electronics. If returning a gift follow our tips and the process should go smoothly. Also, checkout the rules at these 6 big retailers - Wal-Mart, Target, Best Buy, Costco, Sears and Amazon.
ConsumerReports.org - Gift returns: New rules, new tactics Retail Roundup: Rules at 6 Big Retailers

Top 10 Consumer-Friendly Credit Cards
Based on the perceived value of what each card offers to the most people, plus the numbers of online visits to card offers, Capital One's Card Lab was ranked No. 1, according to IndexCreditCards.com. Others making the list are the Gap Visa, BankAmericard, Zappos Rewards Visa, PayPal Debit Card and World of Warcraft Visa.
The 10 top consumer-friendly credit cards of 2007 - MarketWatch

Tats Entertainment: Marketers Get Inked
Looking to make their mark with potential customers, companies across the country are tapping into tattoos as a marketing tool. Businesses are launching products with tattoo-centric names, stamping their logos on temporary tattoos and using ink-covered models in their advertising.
Tats entertainment: Marketers get inked - USATODAY.com

A Lurid Aftermath to a Hedge Fund Manager's Life
A life of private jets and black-tie balls ended with Seth Tobias, a wealthy investment manager and a familiar presence on CNBC, floating face down in the swimming pool of his mansion here. Mr. Tobias, who was 44 years old, had apparently suffered a heart attack, his brother Spence said at the time. But now an unfolding drama over Mr. Tobias's estate is providing a lurid account of fast money and faster living in the volatile world of hedge funds.
A Lurid Aftermath to a Hedge Fund Manager's Life - New York Times

When Warranties Make Sense
In most cases, warranties aren't worth it. But there are a few exceptions. The choice to buy or not to buy is entirely situational. If you and your purchase fit several of these conditions, an extended warranty or service plan may be worth a hard second look.
When Buying a Warranty Makes Sense | SmartMoney.com

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PeopleSupport (PSPT) shares form a bullish "flag" pattern

Larry Schutts — 2007-11-29T15:25:00+00:00

Filed under: Earnings reports, Expedia Inc (EXPE), Technical Analysis, Vonage Holdings (VG), Stocks to Buy

PeopleSupport (NASDAQ: PSPT) provides business process outsourcing services from facilities in the Philippines. Company personnel handle customer service calls, technical support questions, marketing campaigns and collections. The firm also transcribes voice recordings and captions television content. Services are offered via telephone, e-mail and Web chat. Expedia (NASDAQ: EXPE) and Vonage Holdings (NYSE: VG) are major customers.

The firm surprised the Street earlier in the month, when it reported Q3 EPS of 27 cents and revenues of $36.9 million. Analysts had been expecting 6 cents and $34.7 million. Management also guided Q4 EPS to 28-29 cents (4 cent consensus), Q4 revenues to $35.7-$36.5 million ($34.8M consensus), FY07 EPS to 84-85 cents (42 cent consensus) and FY07 revenues to $140.6-$141.4 million ($137.5M consensus). The stock popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with five "buys" and seven "holds." Analysts see a 23% average annual growth rate, through the next five years. The PSPT P/E ratio (16.60), PEG ratio (0.73), Price to Sales ratio (2.14), Price to Book ratio (1.52), Price to Cash Flow ratio (10.38), Sales Growth rate (22.51%), EPS Growth rate (50.00%), Net Profit Margin (13.31%) and Return on Assets (10.64%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 88% of the outstanding shares. Over the past 52 weeks, the stock has traded between $8.19 and $24.41. A stop-loss of $11.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Facebook's creepy Beacon ads put your mouth where your money is

Barry Summerlin — 2007-11-22T12:42:00+00:00

Filed under: Consumer experience, Internet, Google (GOOG), Microsoft (MSFT), eBay (EBAY), Marketing and advertising, IAC/InterActiveCorp (IACI), Sony Corp ADR (SNE), Blockbuster Inc 'A' (BBI), CBS Corp 'B' (CBS), Comcast Cl'A' (CMCSA), Expedia Inc (EXPE), News Corp'B' (NWS)

Facebook has had a breakout year -- BloggingStocks probably should have listed the social networking site among our Hot Products of 2007. It sold a small stake to Microsoft for $240 million, and its success with encouraging third-party add-ons forced News Corp (NYSE: NWS)'s MySpace and even the mighty Google (NASDAQ: GOOG) to change tactics. But as Tom Taulli and The Wall Street Journal addressed yesterday, Facebook's stock with privacy advocates is dropping over its über-creepy Beacon targeted advertising method.

On Facebook, you're as private as you are modest. You have the option of laying bare your bookshelf, Netflix (NASDAQ: NFLX) queue and purse contents for all your friends and neighbors to pan through, or you can leave all that business blank and keep your fancies as mysterious and enigmatic as you are, you unique snowflake. My profile tells users -- not to mention advertisers -- that I like to put on CNBC and dust my marriage-prohibitive record collection. Consequently, I've got E*Trade (NASDAQ: ETFC) and the occasional ironic t-shirt vendor after me, greeting me with animated ads whenever I log in.

By now, web users have learned to deal with e-tailers and ad-serving scripts tracking their behavior, realizing that oft-maligned cookies effectively just save you the effort of typing your password. This is reasonable targeted marketing: I pay nothing for a service, and in exchange, some vendor imagines it got a little closer to a selling me something.

Where Facebook and all the participating advertisers that sail with her cross the icky line is with Beacon. Beacon goes beyond serving up targeted ads -- it takes my purchase information from participating advertisers and broadcasts it endorsement-style to all my Facebook friends, as well as any others in my network who, for whatever illness or boredom, feel like probing my Facebook essence.

Facebook's advertisers page says such ads "act as a word-of-mouth promotion." The idea is that my friends would be sooo enamored of my consumer choices that they would trod off cash in hand to the exact same vendor (now there's an absurd ad waiting to happen -- "Barry bought a round lot of Intuitive Surgical through E*Trade -- Won't you make the switch today?").

We all get the concept, but I'd rather choose when to actually use my word of mouth to let my friends know, or more crucial, to keep stumm if I'm renting ~~something randy~~ Steel Magnolias from Blockbuster (NYSE: BBI). Facebook users can tweak their privacy settings to opt out of the Beacon promos, but you have to do it site by site, and you must renew your decline every week (this is according to an instructional movie at MoveOn.org -- I haven't run into the Beacon service yet because I don't do much online shopping). It's likely that difficult to opt out because Facebook and Beacon advertisers know how averse folks would be to opt in.

Users get nothing out of this, mind you. I'd become a de facto pitchman for whatever service chooses to betray my patronage, with no compensation: no store credit, no discount, nothing.

What's more, how effective can this tactic be? Even if one person heads off to buy the same CD I just enjoyed, how many discriminating friends will write off that snitchy sponsor completely? That I so far know of, participating in the Beacon program are Blockbuster and Comcast (NASDAQ: CMCSA)'s Fandango ticket service. Feel free to use the comments area to call out any other Facebook sponsors who want to abuse your support through the Beacon program.

UPDATE: A Facebook press release lists participating advertisers as:

AllPosters.com
Blockbuster
Bluefly.com (NASDAQ: BFLY)
CBS Interactive (CBSSports.com & Dotspotter) (NYSE: CBS)
eBay (NASDAQ: EBAY)
ExpoTV
Fandango
Gamefly
IAC InterActiveCorp. (NASDAQ: IACI) sites (CollegeHumor, Busted Tees, iWon, Citysearch, Pronto.com, echomusic)
Expedia (NASDAQ: EXPE)'s Hotwire
Joost
Kiva
Kongregate
LiveJournal
Live Nation (NYSE: LYV)
Mercantila
National Basketball Association
NYTimes.com (NYSE: NYT)
Overstock.com (NASDAQ: OSTK)
(RED)
Redlight
SeamlessWeb
Sony Online Entertainment LLC (NYSE: SNE)
Sony Pictures (NYSE: SNE)
STA Travel
The Knot (NASDAQ: KNOT)
TripAdvisor
Travel Ticker
Travelocity
TypePad
viagogo
Vox
Yelp
WeddingChannel.com
Zappos.com

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Barry Diller is buying Expedia, should you?

Jonathan Berr — 2007-11-07T11:42:00+00:00

Filed under: Earnings reports, Internet, IAC/InterActiveCorp (IACI), Expedia Inc (EXPE)

Internet tycoon Barry Diller, who is splitting up his IAC/InteractiveCorp (NASDAQ: IACI) conglomerate, has been adding to his position in Expedia Inc. (NASDAQ: EXPE), the Internet travel site where he's also chairman.

According to Reuters, Diller exercised options to buy 9.5 million shares at $8.59, giving him a 27.7% stake in the company. Judging from the company's recent performance, he may be onto something.

Net income soared 69% to $99.6 million, or 32 cents per share, compared with $59 million, or 34 cents a year earlier, the Bellevue, Washington-based company said today. Revenue rose 24% to $759.6 million. When one-time items are excluded, Expedia said its earnings were 39 cents, beating the 37 cents expected by analysts surveyed by Reuters.

"Expedia succeeded on almost every financial metric during the third quarter," crowed an ecstatic Diller in the earnings release. "These are good results, and our ability to keep them coming depends on the right balance of investment and profitable growth -- and I think we've shown our ability to be in proper cadence with those levers throughout this year."

Though the results were impressive, I am still have my doubts about the online travel business because it's so price competitive. But investors clearly aren't as pessimistic as I am since Expedia shares are up more than 43% this year.

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IACI split is a stunning reversal by Barry Diller

Jonathan Berr — 2007-11-05T10:10:00+00:00

Filed under: Major movement, Products and services, IAC/InterActiveCorp (IACI), Expedia Inc (EXPE)

Ever since Barry Diller cobbled together the internet Frankenstein called IAC/InterActiveCorp. (NASDAQ: IACI), he had been assuring investors that somehow it all made sense to group together TicketMaster with Evite with Ask.com. Wall Street cried confusion.

Then the media mogul spun off his Expedia travel business into a separate company, figuring that was the reason why investors were confused by the ungainly IAC. Judging from the stock price, investors were just as confused as ever, even as IAC said it was "proud to have so many great brands under one roof." Now, Diller has thrown in the towel and is splitting up IAC into five separate publicly traded companies. As envisioned, IAC would be more or less a media and entertainment company, maintaining businesses including Ask.com, Citysearch, Evite, CollegeHumor and Bloglines. The other companies would be centered around HSN, TicketMaster, and Interval International.

Diller seems to have gotten the message from Wall Street, albeit about five years too late.

"We've been a complex enterprise almost from the very beginning 12 years ago, with hundreds of transactions over those years," he said. "And while we've created a lot of value, I've always believed our complexity and many mouthfuls of sentences to explain who we are and what our strategy is have hampered clarity and understanding with all our constituencies, particularly investors."

Plus, the confusion was costing Diller money.

IAC's shares are down more than 20% year to date, underperforming most major tech and media stocks because investors can't figure the company out. For instance, what does CollegeHumor.com have to do with the rest of IAC? Beats me. Meanwhile, Expedia Inc. (NASDAQ: EXPE), a pure play internet travel company, has soared more than 50%.

Some parts of IAC are clearly better than others. Hidden beneath the bureaucratic blubber at IAC are some great businesses such as Evite and Match.com. Maybe these companies will get a chance to shine under a new management structure. I am not so sure investors are going to be real keen on HSN, which has struggled, and LendingTree, given the horrible housing market.

At the end of the day, the one person who will come out on top is Diller. You can bet that he will continue to play a major role in managing all of the businesses he owns, regardless of their ticker symbols.

comScore (SCOR): Monitoring Internet shopping tastes

Larry Schutts — 2007-10-11T13:28:00+00:00

Filed under: Earnings reports, Best Buy (BBY), Expedia Inc (EXPE), Merck and Co (MRK), Technical Analysis, Stocks to Buy, Technology

As business has discovered, successful methods of advertising on the Internet are constantly changing and keeping up requires expert help. There is an outfit in Reston, Virginia that stays abreast of the latest trends by constantly surveying a very large group of online consumers.

comScore (NASDAQ: SCOR) quantifies behavior in the digital world, on the basis of responses from a global cross-section of more than two million consumers. These panelists have given comScore permission to confidentially capture their browsing and transaction behavior. They also participate in survey research that captures and integrates their attitudes and intentions. Company analysts use the information so obtained to help corporate customers enhance their marketing initiatives. comScore serves more than 700 clients, including Best Buy (NYSE: BBY), Merck (NYSE: MRK) and Expedia (NASDAQ: EXPE).

The firm pleased investors earlier in the week, when it issued upside guidance for Q3 results. Management now sees EPS of 15-17 cents and revenues of $22.1-22.5 million. On average, analysts had been looking for 12 cents and $21.89 million. The company expects adjusted EBITDA to be in the range of $4.2-4.6 million, compared to previous guidance of $3.4-3.5 million.

SCOR shares popped on the news and have begun defining a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy", two "buys" and two "holds". The SCOR Sales Growth rate (23.09%) compares favorably with industry, sector and S&P 500 averages. Institutions hold about 5% of the outstanding shares. Since going public in late June, the stock has traded between $19.70 and $39.25. A stop-loss of $32.95 looks good here. Note that the firm is expected to report Q3 results on October 31st, after the close.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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PeopleSupport (PSPT): Handling your BPO needs

Larry Schutts — 2007-08-24T13:55:00+00:00

Filed under: Earnings reports, Analyst upgrades and downgrades, Expedia Inc (EXPE), Technical Analysis, Vonage Holdings (VG), Stocks to Buy

More and more businesses are finding that it can pay to outsource their telephone and Internet customer interface requirements to firms set up to efficiently handle such functions. One such outfit is headquartered in Los Angeles, but operates from shops overseas.

PeopleSupport (NASDAQ: PSPT) provides business process outsourcing (BPO) services from facilities in the Philippines. Company personnel handle customer service calls, technical support questions, marketing campaigns and collections. The firm also transcribes voice recordings and captions television content. Services are offered via telephone, e-mail and Web chat. Expedia (NASDAQ: EXPE) and Vonage Holdings (NYSE: VG) are major customers.

The firm surprised the Street earlier in the month, when it reported Q2 EPS of 16 cents and revenues of $34.3 million. Analysts had been expecting 2 cents and $31.6 million. The CEO cited increasing demand and improved operational efficiencies for the solid results. Management also issued in-line guidance for Q3/FY07 results and announced a $25 million stock buyback. Piper Jaffray subsequently upgraded the shares to "outperform" and four other brokerage firms reiterated "buys."

The stock popped above 30-day, 50-day and 90-day moving average resistance on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys," six "buys" and five "holds." Analysts see a 22% average annual growth rate, through the next five years. The PSPT P/E ratio (18.15), Price to Sales ratio (2.28), Price to Book ratio (1.45), Price to Cash Flow ratio (11.97), Sales Growth rate (32%) and Return on Assets (8.99%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $8.19 and $24.41. A stop-loss of $10.60 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Priceline.com (PCLN): Be your own travel agent

Larry Schutts — 2007-08-21T13:55:00+00:00

Filed under: Earnings reports, Analyst upgrades and downgrades, Expedia Inc (EXPE), Technical Analysis, Stocks to Buy

The establishment of online travel sites finally allowed consumers the luxury of being able to compare available services. The outfit that really set the pace, though, was the one that also let folks haggle over the price.

The firm pleased investors earlier in the month, when it reported Q2 EPS of $1.11 and revenues of $355.9 million. Analysts had been expecting 90 cents and $354.2 million. In discussing the solid quarter, the CEO emphasized a 93% gross bookings growth rate at the firm's Booking.com hotel reservation service. Management also guided Q3 EPS to $1.21-1.31 ($1.07 consensus), FY07 EPS to $3.50-3.65 ($3.10 consensus) and Y07 gross travel bookings to $4.50-4.65 billion ($4.10-4.25B previous estimate). Susquehanna Financial, Stifel Nicolaus and Banc of America Securities subsequently declared the stock a "buy."

Shares popped above 30-day and 50-day moving average resistance on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the shares with two "strong buys," seven "buys" and five "holds." Analysts expect a 23% growth rate, through the next year. The PCLN Price to Sales ratio (2.26), Sales Growth rate (15.68%), EPS Growth rate (101.82%), Return on Equity (19.49%), Revenue per Employee ($1.76M) and Net Income per Employee ($123k) compare favorably with industry, sector and S&P 500 averages.

The stock is one of those used to calculate the AMEX Internet Index. Over the past 52 weeks, it has traded between $30.26 and $79.99. A stop-loss of $66.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Insider buying at Orbitz (OWW) a good sign for the industry

Eric Buscemi — 2007-08-21T12:55:00+00:00

Filed under: Insiders, Expedia Inc (EXPE)

Five Orbitz insiders bought close to $600,000 worth of Orbitz Worldwide Inc's (NYSE: OWW) stock between $9.55 to $10.10 last week. This is another sign that better days could be ahead for the online travel business.

Expedia Inc (NASDAQ: EXPE) earlier this summer announced plans to repurchase 42% of its stock through a tender offer, before the collapse of the high-yield market caused the company to reduce its share buyback.

Collapsed share buyback or not, the executives at the top online travel companies are becoming increasingly bullish. Barry Diller, Expedia's chairman, said in the most recent earnings call that this is a business that can handle leverage, suggesting pricing in this industry is improving. Additionally, Priceline.com Inc (NASDAQ: PCLN) also reported very strong results.

After having a severe industry downturn in 2006, the industry is beginning a nice upcycle. The trend is your friend in the online travel business.

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Are share buybacks at risk? And is there a silver lining?

Jon Ogg — 2007-08-07T12:25:00+00:00

Filed under: Newspapers, Cisco Systems (CSCO), Expedia Inc (EXPE), Procter and Gamble (PG), Wells Fargo (WFC)

In today's WSJ, there is an article discussing the potential lightening up on the pace of share buybacks from public U.S. corporations. The reason is simple: the tightening of capital and lending is causing a liquidity crunch and putting balance sheets more at risk. The WSJ stated that Standard & Poor's estimated that $122 billion was spent by U.S. companies to repurchase stock in Q2 2007 alone. Right now Wall Street is in love with share buybacks. After all, a share buyback in the open market can create a substantial floor in a stock. If it doesn't create a floor it can at least offset some major selling.

Companies that buy their own shares do not necessarily retire the shares permanently. These shares become treasury stock that can be used to fund future buyouts that maybe the company thinks aren't feasible today. The shares can also be used as a form of currency to fund other ventures down the road. But the shares bought back are not in the common stock that receives dividends from the company.

Cisco Systems' (NASDAQ:CSCO) will probably keep buying back stock. Its acquisition targets right now would seem to be smaller players and it is kicking well above what would be "maintenance cash flow." But the huge buyback from Proctor & Gamble (NYSE:PG) and even the recent buyback from Wells Fargo & Co. (NYSE:WFC) could face some pushbacks from borrowers if the companies use too much cash keeping their shares up at the expense of the balance sheet quality. Would this put the "Harry Potter Profit" buyback plan at risk at Scholastic Corp. (NASDAQ:SCHL)? Maybe. Recently, Expedia Inc. (NASDAQ:EXPE) had to cancel its major buyback it was planning to finance with debt, and the reason was the same: 'unfavorable terms.'

But in a day when some efforts are calling an end to quarterly and annual guidance "because it changes the focus to the near-term only", this is a mixed message. Share buybacks are good for current holders. But on a longer-term basis it can be a leveraging up of the balance sheet. If we are really headed into a recession or a slowdown of any real magnitude, then the cash being used for a share buyback may be feeding only short-term investor demands rather than setting aside capital for a rainy day. In Q1 companies were claiming that their balance sheets had never been better in corporate America. We aren't even half way through Q3 yet, and here we are in the midst of a major credit crunch and liquidity squeeze.

Buybacks usually translate to "we think the stock is cheap today." But companies that hike dividends are truly showing a sign that they have visibility and conviction for years ahead, and that has been a more historic measurement of 'rewarding shareholders for the long haul.' If you want to know how popular share buybacks have become recently, there is even an ETF that tracks buybacks: PowerShares Buyback Achievers ETF (AMEX:PKW). Maybe some of the near-term buybacks actually NEED to lighten up.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

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