I believe in second chances.
As critical as I've been about Orbitz Worldwide
Orbitz has been a disaster through most of its publicly traded life. It went public at $15 in July 2007. It didn't help that it began by posting losses, while also failing to keep up with the revenue growth of rivals Priceline.com
To cut a long story short about a stock you should have shorted long ago, Orbitz shares traded as low as $2 last month.
Like many stocks pounded during 2008, Orbitz has been bouncing back lately. Its stock has nearly doubled since December's low. Bottom-feeders may be inclined to take their profits, but I think things can get even better.
Let's talk about the new CEO. Barney Harford is just 37 years young, but he packs an impressive resume. He spent seven years at Expedia, working his way up to eventually watch over the company's Asia Pacific division. This led to his being named to the board of directors at Chinese travel portal eLong
Orbitz may never achieve the brand style points of Priceline or the story-stock allure of China's Ctrip.com
Harford's introduction alone won't make it happen. However, the company also announced that it would trim as much as $25 million from its annual costs. That is on top of $20 million in overhead cuts that the company introduced two months ago.
It may seem unlikely that a company scaling back is preparing to ascend, but Orbitz has the sober attitude and the potentially electrifying chief to finally get this stock heading in the right direction.
Other ways to fly:
Longtime Fool contributor Rick Munarriz has been booking travel online since the 1990s but does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.