Reasons for short :
-I believe EXPE will underpreform it's peers ( BKNG and TCOM ) . I have compared the three and EXPE has the worst fundamental metrics ( BKNG and TCOM look good ) .
-Forward P/E of 228.7
-Price to book is 12.18, high
-Although with a quick ratio of 1.20, they have cash to meet short term debt payments , EXPE Debt over equity at 5.41 is still bad , especially compared to industry peers. For example, to give you a comparison TCOM D/E is 0.67 and BKNG D/E is 2.4
-EXPE also has the worst margins of the three (BKNG is the winner there)
-High short float at 11%.
I think a good way to trade this, while reducing market exposure, is to short EXPE and long TCOM with equal position sizing per side . BKNG is good too but needs to come down some before I personally would enter , whereas TCOM and EXPE are near entry points .
Good luck ~
-I believe EXPE will underpreform it's peers ( BKNG and TCOM ) . I have compared the three and EXPE has the worst fundamental metrics ( BKNG and TCOM look good ) .
-Forward P/E of 228.7
-Price to book is 12.18, high
-Although with a quick ratio of 1.20, they have cash to meet short term debt payments , EXPE Debt over equity at 5.41 is still bad , especially compared to industry peers. For example, to give you a comparison TCOM D/E is 0.67 and BKNG D/E is 2.4
-EXPE also has the worst margins of the three (BKNG is the winner there)
-High short float at 11%.
I think a good way to trade this, while reducing market exposure, is to short EXPE and long TCOM with equal position sizing per side . BKNG is good too but needs to come down some before I personally would enter , whereas TCOM and EXPE are near entry points .
Good luck ~
艾力克~