The Godfather:

| About: The Priceline (PCLN) (NASDAQ:PCLN) embodies the Godfather mantra, "it's nothing personal, just business." over the last few years has been a monster of a stock, buying competitors, taking market share, and handing investors gains of more than 900%. The company has grown revenues and earnings at a breakneck speed helped along by both the smartphone/tablet super-trend of online booking, and through big acquisitions in Europe and Asia.

Acquisitions: was acquired by in July of 2005. is based in Amsterdam and is the world's leading online hotel reservations agency by room nights sold. offers over 215,000 hotels, in 167 countries, and is available in 41 languages.

The second valuable add-on is, acquired by in November of 2007. went on to grow into one of the leading booking websites in the Asia-Pacific region, building a network of 27,000 hotels, and more than 168,000 worldwide. In May of this year the company won the "Favorite Online Travel Site" Award, a prestigious award in Asia, reaffirming Agoda's position as an industry leader in its market.

Earnings: is a fast growing franchise in the fast growing online travel booking industry. earnings growth has exploded from $5.10 per share in 2008, to an estimated $39.70 per share in 2013. Trading at $628.44, 28x earnings, shares are 17% off their 2012 peak; despite reporting a strong Q1, including revenues that rose 29%. The earnings multiple of 28x is a little rich for my liking, but long-term earnings growth looks to be +35% this year and next; leaving the shares trading at 16x 2013 earnings. is a great addition to any portfolio looking for growth, or technology exposure.

Concerns: is very exposed to Europe via the arm of the company, and a fiscal implosion in Spain or Greece would send shares to the low $500 range.


Long-term the global middle class will continue to emerge and travel/vacation spending will increase dramatically. is well positioned in the USA, Europe, and the behemoth that is the Asian market. Also the global smart phone revolution favors electronic bookings, and gives the company access to new markets/customers everyday. should be bought on dips, and held until global consumers no longer wish to go on vacation. If lucky the shares will fall to the $550 range; if not I will accumulate shares on the way up.

Buy on dips, always do your homework, and also see SEC filings.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PCLN, EXPE over the next 72 hours.