Some good news on IFLY sent to me by a friend who asked me to post. These guys have a great record. Check some of their other picks below.
>>Big news for IFLY! Louis Riley is also the promoter of KTEL. Please post the news on SI. He compared IFLY to PTVL and thought IFLY should be worth $25!
Stock Investor Trading News Issues Strong Buy Rating on IFLY
AUSTIN, Texas, April 27 /PRNewswire/ -- Stock Investor Trading News
(http://www.sitn.com) has initiated coverage of 800
Travel Systems (Nasdaq: IFLY - news) with a ''Strong Buy'' rating for
aggressive risk accounts.
''We believe that 800 Travel Systems offers aggressive investors an
excellent opportunity to participate in the fast-growing
online travel service industry,'' says Louis Riley, Fundamental
Analyst with Stock Investor Trading News. ''The Travel
Industry Association of America (TIA) expects Internet ticket bookings
to grow from current levels of only 1% of all tickets
sold to 5% by the year 2000. The TIA estimates that the Internet's
current 1% market share represents $827 million tickets
sold. Consumers have quickly embraced the Internet sales model, with
over six million travelers booking trips online in 1997.
The TIA expects that number to more than double to over 12 million in
1998.''
''Internet industry expert Jupiter Communications Digital Commerce
Group forecasts that online travel revenues will grow to
$11.7 billion by the year 2002, ''locking in travel's position as the
number one online consumer spending segment.'' If such
growth is realized it would represent a more than 1300% gain over
current sales levels in only four years,'' notes Mr. Riley.
''We believe that 800 Travel Systems will soon be well positioned to
capture a significant portion of this large and fast growing
market. The company announced on April 9 that it will develop a new
interactive Internet travel reservation system that will
complement its current telemarketing sales model and upgrade its
current website at lowairfare.com. The company
plans to have the new system online by the end of the year.''
''The key word here is ''interactive'' -- the company plans to enable
a customer to deal directly with a reservation agent on
the Internet via real time chat. This innovation will distinguish 800
Travel Systems from its Internet competitors in a most
meaningful way, as industry studies have found that access to a high
level of customer support is crucial to closing a travel sale.
We are unaware of any other competitor that plans to offer such
value-added human interaction, and we believe that the
company's planned technological edge will make its web site a leading
contender in the burgeoning Internet market. We
believe that the assistance of trained reservation agents will enable
customers to secure lower airfares than those currently
offered via competitors' sites, which frequently rely on off-the-
shelf rates and which are unable to weigh the various options
that may locate the actual lowest airfare for the consumer. ''
''800 Travel Systems has already demonstrated that it can execute a
business plan. The company grew revenues in the 1997
fiscal year by 164% over 1996, slashed its operating loss by 92%, and
generated positive cash flow. The company completed an
initial public offering in January 1998 that raised net proceeds of
approximately $2,993,000. More than half of those monies
have been earmarked for expanding marketing and recruiting and
training an additional 200 reservation agents, more than
doubling the company's present level of staff. On April 16 the company
appointed director Mr. George Warde, former Vice
Chairman, CEO, and President of Continental Airlines and former CEO
and President of American Airlines, to the position
of Chairman of the Board.''
''We believe that in the near future the company's common stock will
close with a bid above $10 for seven trading days during
a 10 consecutive trading day period, enabling the company to call its
outstanding warrants for redemption and bring in an
additional $16.875 million to the company. These proceeds should
ensure the company's ability to achieve the growth strategy
set forth in the initial public offering prospectus: staff its Tampa
and San Diego reservation centers to full capacity of 520
reservation agents per staggered shift, expand marketing, and make
opportunistic strategic acquisitions.''
''We emphasize that an investment in 800 Travel Systems is only
suitable for aggressive investors. The company faces many
challenges, including formidable well-capitalized competitors with
exclusive Internet distribution agreements, negative
industry commission trends, and significant financial and execution
risks. Moreover, the company's shares have a small float
that represents less than 17% of all of the currently outstanding
shares, which may make for extremely volatile price
movements.''
''However, if the company can meet the business and financial
challenges it faces going forward as it has done in the past, we
expect the company's stock to eventually trade at valuation multiples
that are in line with other Internet commerce companies.
Preview Travel (Nasdaq: PTVL - news), another publicly traded online
travel service company, traded at a market
capitalization of over $432 million at approximately 32 times then
reported trailing twelve months (TTM) sales and at its
all-time high on April 3. A similar price to TTM sales multiple for
800 Travel Systems would yield a market capitalization of
more than $263 million and a stock price over $25, assuming dilution
from a warrant call'' says Mr. Riley.
David Barney, Technical Analyst for Stock Investor Trading News, notes
that ''now that the Internet mania has settled down a
little and investors have had a chance to take another look at these
stocks, we feel that the solid Internet plays like 800 Travel
Systems will take the lead. Many of these stocks got temporarily
extended and that is why we have seen this extreme volatility.
However, the companies that have solid prospects like 800 Travel
Systems have held up better than most, because investors can
clearly see where these companies are going. Now that traders and
investors have culled most of the weak stocks from the herd,
we believe companies like 800 Travel Systems will strongly outperform
the market going forward.''
''800 Travel Systems has pulled back on very light volume after a
tremendous run, and now that the online travel sector has
been spotlighted at the Hambrecht & Quist Technology Conference in San
Francisco this afternoon, we feel that the investors
will give the stock another look. Online travel services company
Preview Travel's presentation at the conference after
Monday's market close should clearly separate this sector from the
weaker Internet stocks,'' says Mr. Barney.
''Anytime you purchase shares in an emerging sector you are taking a
chance, and you really need to do your homework before
investing. However, it is easy to see why investors are so attracted
to these stocks. Everyone wants to be part of the next big
wave, and the Internet may just be it. It will be years before we
really know just what the future holds for the Internet and for
many of these companies that are trying to cross the cyber-bridge. But
staying with companies that have a clear business plan
and a good management team is the best way to invest in the group, and
if they have are leveraging off an existing strong
business that has not previously been Internet based, that is just
another plus,'' notes Mr. Barney. ''We believe 800 Travel
System's ultimate success will be determined by the fact that it is a
travel company now marketing over the Internet, rather an
Internet company now trying to market travel.''
Stock Investor Trading News ( sitn.com ) provides a daily
newsletter service to traders and investors around the
globe. Some of the companies past recommendations have included
Amazon.com, Inc. (Nasdaq: AMZN - news), America
Online Inc. (NYSE: AOL - news), Applied Materials (Nasdaq: AMAT -
news), Dell Computer Corp. (Nasdaq: DELL - news),
Intel Corp. (Nasdaq: INTC - news), K-tel International (Nasdaq: KTEL -
news), and Tellabs, Inc. (Nasdaq: TLAB - news).
The company is in the process of building a new website which will be
an online hub for both traders and investors to exchange
ideas and get information.
Mr. Barney and Mr. Riley, as well as other principals and affiliates
of Stock Investor Trading News, currently hold a long
position in 800 Travel Systems via its common stock and/or warrants. |
