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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Steve168 who wrote (22187)	10/6/2005 12:34:57 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78715

re EXPE, TSG. I doubled up on EXPE on recent weakness and still hold my 1/2 position in TSG. I have not looked much more into EXPE numbers but i believe that it trades at 10x EV/EBITDA and about 16x operating earnings - a fairly moderate valuation for a high quality Web business like EXPE. TSG has done well recently despite guiding down, a sure sign that the valuation is very low. Steve's concern that airlines and hotels my go the direct route and promote their own websites is a valid one and it has indeed happened for quite some time. But if you put together a more complex travel arrangement (with hotels ,airline tickets etc.) Expedia was the way to go for us. I also believe that business travel is a big growth opportunity for EXPE and more than likely will have good margins. in any case, I believe that some weakness in the travel sector will actually play in EXPE hands as it will allow them to get better wholesale deals (same happened in 2001).