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).
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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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