Orbitz announcements of deals and personnel changes, like most such corporate news fodder, would not ordinarly be a sign of anything big in the offing. However, with a closing price of $2.40 on Friday, and the inherent value underneath, it doesn’t take a rocket scientist to figure this stock is on the way up.
While it is not our job here to be market speculators or soothsayers, either one, looking at trends and obvious value is part of our consumer advocacy. With TripAdvisor in the credibility soup over questionable reviews, and Google poised to hammer away at Kayak (and even Orbitz), a shakeup of sorts is in the making on online travel. Maybe even a paradigm shift, if Google plays their cards in certain effective ways. What’s puzzling for this writer is how undervalued Orbitz seems. Even Wedbush Morgan Securities just graded the stock neutral.
The appointment of Kenneth S. Esterow to the board of Orbitz is one factor which clearly shows the company headed North rather than South. The former Travelport exec has a wealth of experience in the “trenches” and a track record of successes to match. But, most significantly for Orbitz stock, there is an old saying too; “The only direction now is up,” which is highly relevant for a company with value to offer like Orbitz has.
Bottom line? Look for not only Orbitz stock to soar today, but for the company’s position to soar in light of other developments. And I am not the only one predicting here. Look for Orbitz to offer even better deals and guarantees, if my crystal ball is right that is.