DailyTrends.com Company of the Week: YTB International (YTBL)
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Have you ever wondered why more people do not buy their airline tickets on the Internet? I travel by plane 15-20 times a year and notice individuals (each and every time!) who are not precocious enough to go in the self-service lines and tango with the kiosks.
Not to say that I am computer literate, but printing my ticket online and thus avoiding the long lines before take off only help me keep my stress levels to a minimum.
One small company that is benefiting vastly from the burgeoning online travel industry is YTB (YTBL).
The best thing is, YTB does not compete but directly compliments online travel behemoths such as Priceline or Orbitz.
YTB is engaged in referral marketing and travel through three divisions.
YTB Travel Network division provides support services for over 9,500 referring Travel Agents that are currently selling travel-related services.
REZconnect Technologies develops online travel stores for full service agencies and hosts over 2,500 locations, which include the development of several franchise systems and storefront locations throughout the USA and in overseas locations. It also has an agreement with Wal-Mart Stores to operate franchise locations within their SuperCenters.
Their latest development, REZcity.com, just completed its third year and was rated as one of the top 500 franchise companies from Entrepreneur Magazine survey, January 2005 issue.
Conclusion by Lahiji:
Stock is undiscovered and just came public less than a year ago.
I think that the residuals alone will generate substantial growth for shareholders.
My price target is north of two dollars ($2.32). The Company is expecting to make .10 to .12 EPS this year, and it's worthy of a forward looking P/E of 20. As YTB makes agreements with online industry giants like Travelocity, I say watch out for even more deals moving forward.
Chris Lahiji will be available to take your questions until Thursday, April 7. Please use the form below to submit your questions.