Wednesday, January 24, 2007

TravelZoo (TZOO)

"Travelzoo Inc., an Internet media company, publishes travel offers from various travel companies. The company's publications include the Travelzoo Web sites, the Travelzoo Top 20 email newsletter, and the Newsflash email product. It also operates SuperSearch, a pay-per-click travel search engine. Travelzoo' products provide advertising opportunities for airlines, hotels, cruise lines, vacation packagers, and other travel companies. Its products also provide Internet users with a source of information on current sales and specials from various travel companies. The company offers its products through online marketing and direct marketing. It operates in the United States and the United Kingdom. Travelzoo was founded in 1998 and is based in New York City."

Travelzoo looks like a very interesting company.
It is a small cap, (Market Cap : 470.77M)
P/E : 36 (fwd p/e is 26)

Profit Margin (ttm): 21.55%
Operating Margin (ttm): 38.93%

Return on Assets (ttm): 35.16%
Return on Equity (ttm): 35.73%

Revenue : 65.77M
Cash : 28M
Rev growth: 30%+

Insider holding : 83%
Avg Volume : 600k (i read somewhere there is a min for a stock to be considered as a HG. Can some one tell me what that is and what that matters so much )

Only negative : Short is 36% of the float

A highly profitable company with a solid balance sheet, Extremely high insider holding and growing strongly.

The company makes all its money from advertising and offering good service to the consumers. It does not have to Sell tickets/ inventory online on its website like Expedia.com or Travelocity.com

The company is very light on CapEx.

Owner Run Rate is 15Million.
Cash King Margin is 25%

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