| Stock (Symbol) | Stock Price | |
Priceline.com (PCLN) |
$608 |
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| Data is as of | Expected to Report | Sector |
September 11, 2012 |
Nov 5 |
Retail & Travel |
| Sharek’s Take | ||
I’m slashing my Fair Values on Priceline.com (PCLN) because company management lowered guidance after it reported profits last quarter. This year’s Fair Value drops from $1108 to $815. Next year’s drops from $1386 to 978. Those are big drops. Still, PCLN is really undervalued and should continue to grow rapidly. Management has been seeing weaker transaction growth rates for several quarters now in certain Southern European countries. So management is assuming that trend will continue. It’s forecasting 9% to 15% revenue growth this quarter, which would be down from the 20% it had in each of the last two quarters. |
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| One-Year Chart | ||
 PCLN dropped from $680 to $562 after the bad news was announced. PCLN has rallied recently as there has been news of strong travel demand in Europe. This stock is tasty at 20 times earnings. You just have to deal with the current European uncertainty. |
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| Earnings Table | ||
 Sales grew 20% for the second straight quarter. Profit growth was a solid 43%.PCLN crushed estimates (as it usually does) by 48 cents last quarter. The company has been whipping estimates every quarter since 2010 Q1.
Here we see Annual Profit Estimates declined this quarter. That’s a lot more red in this chart then there was last quarter. |
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| Fair Value | ||
 I’m taking my Fair Value P/E down from 35 to 27. Stock’s still undervalued. |
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| Ten-Year Chart | ||
 This stock has been one of the best investments during the past decade. Now PCLN looks to be building a base. I expect the stock to hit $1000 next year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 16 |
PCLN isn’t one of my top two stocks as it usually is. In fact, I feel Mellonax Technologies (MLNX) and Michael Kors (KORS) are more timely right now (Apple is #1). At least PCLN is rising now, as people think European travel is doing well. PCLN is ranked 4th in the 16 stock Growth Portfolio and 8 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
4 of 8 |
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