Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Mr. Market Offers A 'Deal' On Travelzoo

Shares of Travelzoo (NASDAQ:TZOO), the online travel and entertainment deal company, trade at 52-week lows after a post-earnings sell off, pricing Travelzoo just north of $260 million. The company has $61 million in net cash on its balance sheet, representing 24% of the market cap ($200 million enterprise value).

(click to enlarge)

TZOO data by YCharts

While the Travelzoo valuation has become much more undemanding following the rout in its share price after reporting underwhelming Q1 results, management provided a pre-earnings "tell" to investors when it announced it replaced certain executives in its Search & Local business due "to continued weakness in the company's local voucher sales and declining search revenues."

Those are not the kind of...

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