Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] ROOM
Date: Thu, 17 Jan 2002 12:59:11 -0500
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Hi Andreas, I actually was referring to two things by my "soft year" comment. First was actual earnings, which were good and growing, but still make this year's comparisons easier on a percentage and year to year basis. But I was also referring to the fact that the tourism industry has been hit very hard, first by a slowing economy in both the USA and globally. Then by the events of 9/11. Contrast this to year 2000, when recession was not even being discussed, and now today is reality. The comparisons for those industry sectors directly aligned with consumer discretionary spending are pretty dramatic. People are less willing to travel and spend these days, whether for business or pleasure. Some are afraid of traveling by plane, some are just worried about the cost, as more people get laid off from work. I expect it will become increasingly difficult for companies in the travel / tourism industry to show even neutral year to year comparisons, much less any kind of growth. 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 12:45 PM Subject: AW: [CANSLIM] ROOM > 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 .... > > > > > > - > > > -To subscribe/unsubscribe, email "majordomo@xmission.com" > > > -In the email body, write "subscribe canslim" or > > > -"unsubscribe canslim". Do not use quotes in your email. > > > > > > > > > > > > > > - > > -To subscribe/unsubscribe, email "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your email. > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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