Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of travel discount company Travelzoo
So what: There are a few things at work today driving shares higher. There's a little momentum left from the earnings spike but Benchmark Co. analyst Frederick Moran fueled the fire upgrading the stock to a buy and slapping a $123 price target on shares. There is also a big short squeeze in the works as traders have bet this expensive stock couldn't possibly get more expensive.
Now what: The shorts were obviously wrong heading into earnings season, and those who may be left are licking their wounds right now. Considering the stock's lofty 66 forward P/E ratio right now, I'm just not seeing this as a buying opportunity. I may miss out on a higher move by this rocket stock, but I won't get burned if the short squeeze ends and shares tumble back to earth either.
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