So could TRIP pay off my honeymoon?

 

Summary

Trip Advisor is a spinoff from Expedia ...and value investors love spinoffs! I like it when stocks are sought by multiple trading philosophies. It's also acquiring competitors, we have to see if this is a net benefit.

 

Liquidity is 129 M$ which is more than enough bait for the big bulls to stream in.

 

Earnings and Sales Growth

2011 gwth 40 %

2012 gwth 5 %

2013 gwth 12 %

2014 gwth 27 %

EPS gwth Rate 30 %

The above shows 4 straight year of accelerating growth if 2013 and 2014 work out.

 

4 Q of increasing sales, latest is 25 %.

5 Q of increasing earnings, latest 32 %.

Again, more source of acceleration  in both earnings and sales. So far so good!

 

Screens

I recently bought the Getting Started book on Kobo and have been reading through it. I decided to build some screens based on what he recommends from each chapter to see how my watchlist stands up to them. 

 

In any case, my Galgani Ch3 screen gets 69% but I'm assuming 25% in all the last 4Q. In this case, earnings accelerated consistently for 5 Q straight so I assume this adequately replaces the 31% missed in this CL.

 

This is especially true coupled with 43% ROE, showing very good efficiency.

 

My Galgani Ch4 screen is 83%. Funds need to increase a bit faster per Q.

 

My Buy checklist is 92 %, U/D is too low. WON CL is 100%

 

Accumulation

Accumulation is mediocre for my taste, B+ and 1.0. It seems this based on the time scale of A/D vs U/D, accumulation could be accelerating, if if I assume 1.0 is the equivalent of C.

 

Chart

TRIP broke out of stage 1 (2 if you count IPO base) double bottom with 2 handles (green flag 1 and 2). In hindsight, if you treated it this way instead of as a cup you had way less risk as the pivot is less extended from the 10 week. As well it offered two buypoint near each other, giving you two opportunities to buy.

In any case it then forms three-weeks-tight, but weekly volume is weak. Do not buy. (Purple flag)

 

TRIP then rebounds off the 10 week in strong vol (green flag 3) but subsequently fails a 3WT and straddles the 10 week until it bounces off in good vol (green flag 4).

 

Lately you can see a large spike in RS, plus it is near its highs shows this one is a potential popper when the follow through day arrives. It is not leading the price in making new highs, but seems perfectly in sync.

 

No real sell point showed itself except maybe late February, but stock did find support while the market seemed flat at the time.

 

My only problem is the high percentage of fund ownership. Is this good or bad when ownership is saturated by funds?