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Travelzoo - When Will This Stock Blowup?

Travelzoo (TZOO) is a 2004 version of the Internet bubble craze of 1999 and 2000. From its web site Tavelzoo links you directly to travel offers from airlines, hotels, car rentals, cruise lines, vacation packagers and other travel sites. TZOO claims to have over 7,000,000 subscribers who scan offers from more than 300 advertisers from which it collects advertising fees.

Speculators and investors have bid up the stock price to unsustainable levels.

The current price to earning ratio is over 300 (82/0.26). When will its five minutes of fame end? Who knows. But the stock is a disaster just waiting to happen.



 

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