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To: Lizzie Tudor who wrote (20984)	6/1/2004 6:44:41 PM
From: Lizzie Tudor	Respond to of 57684

Travelzoo Keeps Zooming There's a lot to be said for the simplicity and profitability of the business model. (Hey, we run something similar at the Fool Travel Center.) Instead of competing with the online travel biz's dueling powerhouses like Orbitz (Nasdaq: ORBZ), Priceline.com (Nasdaq: PCLN), or InterActiveCorp's (Nasdaq: IACI) Expedia, Travelzoo actually gets advertising dollars from places like these, along with airlines and scores of others. Last year, the firm's revenues grew 83% and net income was up 140%. The latest quarterly numbers, released back in mid-April, show a company that's still putting up some impressive growth numbers. Revenues jumped another 74% and net income climbed 152% over the prior-year quarter. Gross margin was an incredible 97% in the latest quarter, while the net margin is a tamer 18.5%. The firm has $3.4 million in the bank, and no debt. But does this justify the stock's recent run and its current P/E near 200? I'm going to have to say, "Nope." At first blush, this ought to remind some of you Fools of Taser International (Nasdaq: TASR), another firm with a good business model and strong prospects. But what flies up can come down pretty quickly, too. fool.com