Here’s the skinny on the PCLN/TRIP deal…and a look at Expedia (EXPE) (October 14, 2015)
I want to look at Expedia ( NASDAQ:EXPE ) today. This stock is down almost 5 percent today, but it’s tagged the 50-day moving average, which is a good thing. Because every time it’s hit the 50-day moving average since earlier this year it’s been a good opportunity to be buying this stock. The company reports earnings right at the end of this month on October 29th. I think this is a good buying opportunity right here. This is a stock though, that can move big time. All these travel companies can move in a big way when they report earnings so it’s got to be something that you’re really in for the long-term as opposed to a trade.
I’m just telling you, if you’re buying it in anticipation of great earnings and, “Oh, the stock’s going to pop;” that’s not why I’m talking about this stock. I’m just saying technically it looks really good. But the reason that I’m drawn to this is this: Priceline ( NASDAQ:PCLN ), which didn’t have a good day, down 2.5 percent, struck a deal with TripAdvisor ( NASDAQ:TRIP ), which did have a good day, it’s up 25 percent. They struck a deal, which is not good for Expedia ( NASDAQ:EXPE ), because Expedia ( NASDAQ:EXPE ) is going, “Well, what about us?”
So I’m looking at TripAdvisor ( NASDAQ:TRIP ) and I have a long position. I had a short position, closed that thing for some money first thing this morning and now I’m long, not comfortably long but long in an uncomfortable way I guess. But this looks like it’s going higher.
Priceline ( NASDAQ:PCLN ), it could go lower but I’m not trading Priceline ( NASDAQ:PCLN ) right now. But I looked at that deal and thought, “Humm, I wonder how Expedia’s ( NASDAQ:EXPE ) doing?” which is really how you want to be thinking when you’re in the market. You look at Walmart ( NYSE:WMT ) and you see what happened to that today, and then you start looking around for other stores, “I wonder how Family Dollar ( NYSE:FDO ) did, or Dollar Tree ( NASDAQ:DLTR ),” or something like that. So anyway, I got back to Expedia ( NASDAQ:EXPE ), I’m looking at this and I’m thinking about $120.00 is a pretty low-risk place to buy, as long as this uptrend continues.
So if you want to own some Expedia ( NASDAQ:EXPE ), it’s a pretty good opportunity to get it. Better at 120.00 than at 130.00, that’s just the way these stocks trade. But I’ll say it again, if you think that I’m saying, “Get it while it’s hot. Buy it before earnings in a couple weeks.” That’s not what I’m saying at all. I’m saying this is at a good technical buy point on a strongly uptrending stock, and I don’t particularly see this trend ending in a couple weeks. So anyway, I hope that helps.
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