TRVG

Booking Holdings Is a Net-Cash-Rich, Free-Cash-Flow Generating Powerhouse!

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Image: Booking Holdings remains an asset-light, free-cash-flow generating powerhouse. By Brian Nelson, CFA On November 2, Best Ideas Newsletter portfolio holding Booking Holdings (BKNG) reported excellent third-quarter results with revenue advancing 21.3% and non-GAAP earnings per share coming in ahead of the consensus forecast. People around the world continue to book travel and accommodations as pent-up demand from the COVID-19 pandemic continues to showcase itself in Booking Holdings’ results. Gross travel bookings advanced 24% (21% on a constant-currency basis) in the quarter on a year-over-year basis, and the firm converted this strong demand into a 51% increase in net income. We like the asset-light, free-cash-flow generating nature of Booking Holdings, and we continue to believe it belongs in the Best … Read more

Best Idea Booking Holdings Soars!

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Image: Booking Holdings’ free cash flow conversion is about as good as it gets. The company remains a key idea in the Best Ideas Newsletter portfolio. Image Source: Booking Holdings By Brian Nelson, CFA We initiated a position in Booking Holdings (BKNG) in the Best Ideas Newsletter portfolio in June due in part to its extremely attractive valuation at that time, of which we highlighted graphically in this April 19 note. Booking Holdings’ price-to-fair value disconnect was rather large back in April following a huge fair value estimate increase around that time. Shares of the company have now surged past our fair value estimate of $3,164, as indicated in post-market trading following its fantastic second-quarter 2023 results, and we’re sticking … Read more

New Issue Airbnb’s Shares Pricing In Strong Recovery and Then Some

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Image Shown: Airbnb is losing money hand over fist while as it grows into its substantial market opportunity. Source: S-1. By Brian Nelson, CFA Rental platform Airbnb (ABNB) has been a part of the latest series of IPOs that have soared out of the gates recently. Shares went public at $68 per share December 10, and now the equity is trading at more than $148 per share at the time of this writing. For those that don’t know the story of Airbnb (AirBed & Breakfast), the concept started in 2007 when, after discovering that every hotel was sold out during an international design conference in San Francisco, the founders started renting airbeds in their apartment to conference attendees. Thirteen years have now … Read more

Boeing’s Financials Are Absolutely Frightening

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By Brian Nelson, CFA On November 18, 2020, Boeing (BA) announced that the US Federal Aviation Administration (FAA) withdrew its order that had grounded its 737-8s and 737-9s (737 MAX) that had been involved in two terrible accidents during the past few years, a Lion Air flight that killed 189 people and an Ethiopian Airlines jet crash that claimed the lives of 157 more. We’ll never forget these tragedies and the impact on the families and the aviation industry, more generally.   In January 2017, we had added Boeing to the Dividend Growth Newsletter portfolio, but we had removed it March 16, 2018, prior to the unfortunate and high-profile accidents that occurred several months after. During the short time it … Read more

Asset Light, Free-Cash-Flow Generating Powerhouse Bookings Holding (Priceline) Remains One of Our Favorite Ideas

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Image shown: Booking Holdings’ equity has been a strong performer the past few years. By Brian Nelson, CFA Booking Holdings (BKNG), formerly Priceline, has been an idea for consideration in the Best Ideas Newsletter portfolio for some time. A number of our best ideas have a few things in common. For starters, they are asset light, meaning that they generally don’t require lots of reinvested capital to keep their businesses growing. A byproduct of this feature is that they generate considerable free cash flow, and by extension, they have strong cash-rich balance sheets. Booking Holdings fits the bill, and the company has been a strong performer the past few years, as the chart above shows. For those that may not … Read more

Booking Holdings Pops, Still Underpriced

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Booking Holdings, formerly Priceline, reported solid second-quarter 2019 results. We continue to believe this Best Ideas Newsletter portfolio holding is undervalued. Our fair value estimate stands at ~$2,130+. By Brian Nelson, CFA Booking Holdings (BKNG), formerly Priceline, was added to the Best Ideas Newsletter portfolio in February 2015, registering a 10 on the Valuentum Buying Index at the time, at ~$1,240 per share. Shares of the company are soaring during the trading session August 8 on news of a strong second-quarter report. Shares currently trade hands for ~$1,950 each. For some of our new members that may not be familiar with Booking Holdings, the company operates the “world’s leading brand for booking online accommodation reservations,” Booking.com. It also operates KAYAK … Read more

Dividend Increases/Decreases for the Week of September 15

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Below we provide a list of firms that raised their dividends during the week ending September 15. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Absa Group Limited (AGRPY): now $0.5518 per share dividend, was $0.5416. AGNC Investment Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (AGNCN): now $0.6676 per share quarterly dividend, was $0.6482. Andlauer Healthcare Group (AND:CA): now CAD 0.09 per share quarterly dividend, was CAD 0.08. Brambles (BXBLY): now $0.26 per share dividend, was $0.22. China Resources Cement Holdings (CARCY): now $0.1364 per share dividend, was … Read more