PCLN(NASDAQ)

Background
priceline.com Incorporated is an online travel company that offers its customers hotel room reservations at over 210,000 hotels worldwide through the Booking.com, priceline.com and Agoda brands. In the United States, the Company also offers its customers reservations for car rentals, airline tickets, vacation packages, destination services and cruises through the priceline.com brand.

Background

In the United States, the Company also offers customers the ability to purchase other travel services, including airline tickets, rental car days, vacations packages, destination services and cruises through both a traditional, price-disclosed retail manner, and through its demand-collection system known as Name Your Own Price.

Fundamentals'
During the year ended December 31, 2011, it re-branded Travel Jigsaw as rentalcars.com through rentalcars.com, it offers retail price-disclosed rental car reservations worldwide. It offers car rental reservations worldwide through rentalcars.com.

Fundamentals'
Priceline uses a unique business model known as the reverse auction pricing model. Not only has Priceline pioneered this business model, but it has also patented it. Priceline is that it has been aggressively expanding its international presence. International bookings currently account for 78% of its total business.

Fundamentals'
Priceline has been destroying its competition in terms of generating revenue. Priceline has increased its revenues by more than 209% from 2008 to February of 2012.
It has a 3-Year Sales Growth rate of 35%

Fundamentals'
Priceline.com has an excellent combination of strong free cash flow generation and low financial leverage. We expect the firm's free cash flow margin to average about 29.9% in coming years.
Total debt-to-EBITDA was 0.4 last year, while debt-to-book capitalization stood at 18.3%.

EARNINGS ESTIMATES
This Quarter 06/2012
Average Estimate Number of Estimates Low Estimates High Estimate Year Ago EPS EPS Growth

Next Quarter 09/2012 12.48 11 11.41 13.07 9.75 28.04%

This Year 12/2012 30.06 11 28.80 30.88 22.32 34.66%

Next Year 12/2013 37.21 11 34.74 39.31 30.06 23.79%

7.07 11 6.93 7.25 5.27 34.21%

Financial Summary

Industry Analysis
Expedia
Market Cap Revenue Gross Margin EBITDA Operating Margin 7.38 B 2.88 B 79.28% 735.35 M 22.24%

Orbitz
501.64 M 743 M 81.70% 149 M 10.90%

Priceline
9.27 B 2.20 B 52.33% 445.13 M 18.41%

Travelocity
N/A N/A N/A N/A N/A

Industry
497.45 M 929.06 M 46.97% 158.63 M 17.80%

Net Income
P/E

-2.56 B
N/A

-311 M
N/A

456.39 M
22.30

N/A
N/A 22.41

Capital Structure

Future Path of Fair Value

Future Path of Fair Value

Future Path of Fair Value

Analyst Estimates

Zakcs Research Price Target ( $ 810) JPMorgan Chase.Price Target ( $ 707) Piper Jaffray . Price Target ( $ 881) Piper Jaffray . Price Target ( $ 881) Mean@ yahoo Finance..Price Target ($ 803) NasdaqPrice Target ($ 800) Consensus At Ft.com..Price Target ($ 800)

Stock Performance

Stock Performance

Technical's
Current Market price ..645 50-Day moving avg566 100-Day moving avg490 1st Support@ 628(23.60% Retracement) 2nd Support@538(28.30% Retracement) 1st Resistance@650 2nd Resistance@700

Conclusions
Stock in its correction phase Fundamentals are awesome. Sales growth more than 30% Strong free cash flow

Recommendations
Based on a strong fundamentals , we expect the company has the ability to outperform the market.
Buy@590-600 Buy on dips We recommend that the company be kept on the watch list.