PCLN - Time to book profits

[traderthoughts.com]

Following the announcement of Q4 results, PCLN surged 21%. With this gain, PCLN has broken the short-term down trendline. While the results did bring in a good bullish sentiment, we suspect that the phenomenal 21% surge could be partly driven by a short covering on the stock (Short Interest Ratio for the end of Jan - 4.51). While we believe that Priceline.com will continue to grow (The company has guided a 60 - 65% increase in its bookings for Q1 '08), we are doubtful whether the company could continue such a powerful growth trajectory. For Q1, the company has guided an 85 - 90% YOY increase in international travel bookings. Intl. bookings represents 56% of the company's total bookings. This figure is lower from what the company achieved for Q4 (113% in Q4). We thus believe that the current levels are a good opportunity to book profit on the stock, though the short covering could continue for a few more days. A detailed and free report on PCLN can be found at stocks2pick.com