SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (20796)8/16/2005 11:31:04 PM
From: Spekulatius  Read Replies (4) of 78704
 
Bought 1/2 positions in travel stocks TSG and EXPE.
Both are good business with high FCF (low capex and working ) capital. They are the leaders in their respective markets - TSG own the market leading SABRE booking system and the Travelocity website (23% market share). EXPE own Exedia and Hotel.com website with more than 40% market shares. Both stocks are cheap, IMO. TSG trades at a PE of 13, EXPE trades at and EV/EBITDA of around 11, if my calculation is correct. EXPE stock has fallen from grace after the spinoff from Interactive, which is a good chance to own a stake in the most attractive IACI business at a reasonable price. I admit that the "noncash" stock option expense is fairly high, but that number has been coming down quickly over the years.

I still need to investigate EXPE numbers some more, the EBITDA number above is only a rough estimates based on the SEC prospectus. IACI's number are very convoluted through acquisitions etc. and EXPE's as a recent spinoff is difficult to evaluate as a standalone entity as well but it's fairly obvious that EXPE generate a fair amount of FCF.

To raise some cash, i sold my starter position in BFCF at a modest profit. I also sold some VIA but still hold a full size position (I was overweight, when the stock went to 32$). I think marketswill offer some bargains in September.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News