Expedia Stock is Booked

Hey Guys,

I am announcing my first pick for my portfolio.

Expedia Inc. (EXPE) - Price picked at 13.05 a share.

Expedia is an online travel agency that does bookings for airlines, hotels, and etc. Expedia.com is there website.


After, looking through there financials. I believe within the next year they have good potential. They just started trading there stock on the NASDAQ exchange about a year ago.

First of all, the stock has several companies/people that own over 5% of the company. For example, Microsoft Corp. owns 5.5% as of 12-31-05. Their travel "bookings" has gone up consistantly about by $3,000,000,000 each year for the past 3 years. The book value is $16.74 a share right now. It is down from about $20 per share from last year. Which is negative, but I believe it is ok. Their price to earning is a little high for me at about 22. Within the next year, I believe there earning's will grow to outweigh this 22. No Long Term Debt. I believe this speaks for itself.


Read there lastest 10-K annual report here: Expedia Inc's 10-K Report


I only have a few major concerns. I am worried about whether or not if Expedia will be able to grow their travel "bookings" in this economic condition. Will people be able to afford vacations and trips? Which maybe, will be a plus for expedia since they offer discounts. I also, worry about competition. Travel agency market is a very competitive market. Especially, now with the growth of the internet.

All-in-all, I believe Expedia has a solid foundation to overcome these negative concerns I have. I am going to post Expedia Inc. as one of my portfolio picks. The price of the stock may fall in the short term, but by the end of next year it will be justified I believe.


Good Luck out there and do your own homework.