I will be selling Travelzoo (TZOO) from the Growth Portfolio today. Travelzoo is having problems with its Local Deals and that is bringing down earnings estimates.
It hurts to sell this stock because I feel the company is going to do well as it expands into Europe. Europe is where the growth opportunity is but Local Deals was supposed to be kicking in good growth now.
When a Local Deal is issued, the restaurant gets a bigger cut of the pie from Travelzoo than say Groupon or Living Social would, so TZOO should be doing well with this program. Instead profit estimates are falling because Travelzoo’s team isn’t signing up enough new restaurants.
As a side note, I purchase Local Deals from Travelzoo and haven’t received an email about new deals in months. My friend gets them all the time. I logged onto Travelzoo.com and tried to figure out how to fix this and get back on the mailing list, but I couldn’t solve the problem.
I’ll keep TZOO on the radar. Look at the Fair Value, very solid for 2013.
View the One Year chart here.
View the Ten Year chart here.
View the Earnings Table here.
