As 2011 comes to a close, it's a great time to look back at what happened to the stocks that interest you. By making sure you know the important things that a company accomplished -- as well as the setbacks it experienced -- you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Travelzoo
Stats on Travelzoo
|Year-to-Date Stock Return||(34.8%)|
|Market Cap||$430 million|
|Revenue, Trailing 12 Months||$142 million|
|1-Year Revenue Growth||31.0%|
|1-Year Profit Growth||(95.4%)|
|CAPS Rating (out of 5)||**|
Source: S&P Capital IQ.
What happened to Travelzoo this year?
Investors seem to have gotten a reality check on the no-moat nature of deal-focused sites like Travelzoo. OpenTable
But the floodgates really opened in July, when Travelzoo missed estimates on both sales and earnings. With subscriber growth slowing, the stock couldn't support the massive multiples investors had put on it, and shares now stand at barely a quarter of their highs earlier this year.
One of the stranger episodes for the company this year came from "ChaPaVe Partners," which made a "tactical tender offer" for 1.5 million shares of Travelzoo at $40. The terms of the offer were so unusual, though, that it led many to conclude that it was probably bogus.
As the year ends, Travelzoo needs to establish its dominance in the travel-deal niche. If it can, then the future may be brighter for the company than the past has been. Until then, though, 2011 will be a year to forget for Travelzoo.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of OpenTable and Amazon.com. Motley Fool newsletter services have recommended buying shares of priceline.com, Amazon.com, OpenTable, and Travelzoo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.