TravelZoo has said on its own that it has challenges ahead. It needs a few signs to reassure investors that it has a solid roadmap ahead.
As a value investor, I am constantly on the lookout for companies that are currently under-priced in the market relative to their future prospects for growth. As part of my search for such companies, I pay close attention to ones which have recently had a large drop in price due to a specific negative event. Often times such drops could be a good entry point to take a position if you believe the long term prospects are still good and the bad news is just a short term difficulty.
One such company that came on my radar the end of last week was Travelzoo (TZOO). On Friday morning October 12th the company issued a warning statement that its 3rd quarter sales and earnings would belower than expected.
The Daily Newsletter
Our daily coverage of the global travel industry. Written by editors and analysts from across Skift’s brands.
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