AW: [CANSLIM] ROOM

From: Andreas Himmelreich <judgejimmy@web.de>
Subject: AW: [CANSLIM] ROOM
Date: Thu, 17 Jan 2002 18:45:58 +0100
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Hi Tom,

What do you mean by soft year?

Here the EPSs -->

0.2
0.29
0.69
1 (my estimation for 2001)
1.5 (my estimation for 2002).

Its a smal cap going to be a mid cap, no firm can perform as good as in the 
first years of growth, that slows like
in all firms in this transistion phase.

PE is moderate, I like the scalable business model. They surfed through 
9/11 businesswise in a good way.

Hotels need ROOM, they provide a secondary room market in order to get 
their hotels full on lower prices, while
still selling normal rates to groups that are not price sensitive (business 
travel, not so smart shopers).

Room is a marketer of hotel room capacity and if somthing hotels need in 
though times then it is
to market their capacity on garanteed price levels in order to cover their 
fix costs.

ROI 12%, no dept, MGM owns 59% of the company.

4 Earnings suprises the last 4 Quaters.

Here a summary (http://biz.yahoo.com/p/r/room.html)


Hotel Reservations Network, Inc. is a consolidator of hotel and other 
lodging accommodations. The Company contracts with lodging properties in 
advance for volume purchases and guaranteed availability of rooms at 
wholesale prices, and sells these rooms to consumers often at significant 
discounts to published rates. The Company's supply relationships also often 
allow it to offer customers accommodation alternatives for otherwise 
unavailable dates. In addition, through its wholly owned subsidiary, 
TravelNow.com Inc., the Company offers customers the ability to book hotel 
rooms, airline travel and car rentals. As of December 31, 2000, Hotel 
Reservations Network had room supply agreements with approximately 2,600 
hotels in 97 major markets in North America, the Caribbean, Western Europe 
and Asia, as well as 113 vacation rental properties in 17 markets in North 
America and the Caribbean.


"Hotel Reservations Network is an online consolidator of hotel 
accomodations, contracting with hotels in advance for volume purchases and 
guaranteed availability of hotel rooms at wholesale prices which are then 
sold to consumers. For the nine months ended 9/30/01, net revenues rose 73% 
to $394.8 million. Net income rose 43% to $8.1 million. Results reflect 
increased room sales through the Company's Internet sites, partially offset 
by higher non-cash marketing costs."

Andreas


> -----Ursprungliche Nachricht-----
> Von:	Tom Worley [SMTP:stkguru@netside.net]
> Gesendet am:	Thursday, January 17, 2002 5:45 PM
> An:	canslim@lists.xmission.com
> Betreff:	Re: [CANSLIM] ROOM
>
> Hi Andreas,
>
> I would be cautious with ROOM, great sequential sales growth not 
reflected
> in sequential earnings growth. Year to year earnings comparisons nice, 
but
> against a soft year. And with all that has happened since 9/11, hotels 
are
> cutting prices to attract visitors and increase occupancy, and avoid 
laying
> off staff or cutting services.
>
> So I would expect to see a continued erosion in their gross and net 
profit
> margins.
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
> ----- Original Message -----
> From: "Andreas Himmelreich" <judgejimmy@web.de>
> To: <canslim@lists.xmission.com>
> Sent: Thursday, January 17, 2002 11:34 AM
> Subject: [CANSLIM] ROOM
>
>
> > After this storm is over, Room might have built a nice CWH ....
> >
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