Great News For PNOW

Last week, Marketwatch posted a report about how major Online Travel Agencies (OTAs); Priceline and TripAdvisor stocks have been downgraded, and Expedia’s stock target was axed to $93 from $135 by Goldman Sachs.

At first glance, this may look like bad news for Oveedia, however, it is actually great news for PNOW investors! Let me explain why.

A firming economy and cheap gas prices are helping the travel sector, pushing hotel occupancy near record levels and airline seats at capacity highs.

This trend should continue as American Express Business Travel’s forecast for 2016 predicts an increase for air, hotel and ground transportation costs, with demand continuing to exceed supply.

So, the demand is there. The reason major OTAs are experiencing difficulty, stems from uncertainty over the effects of AirBNB, as well as hotel consolidation. is a niche OTA, focused on the underserved region of Central America and Latin countries in the Caribbean. By creating this database of underserved hotels and vacation rentals, Oveedia is likely to become an extremely desirable acquisition candidate for the major OTAs.

Priceline and Expedia have spent $11.5 billion alone in acquisitions in the last few years.

They have also shown an appetite for Latin American countries as well, with Expedia investing $270 Million for less than a 20% stake in Argentina’s OTA, Decolar… and Priceline injecting $60 Million in Brazil’s OTA, Hotel Urbano – both in South America.

These factors are very beneficial for Oveedia as an acquisition candidate.

So with this said, the price drop in these major OTAs, benefit our investors in two primary ways:

  1. Investors looking to profit from the travel industry will begin looking at up and coming OTA’s like, that carve out a niche market, which will ultimately be extremely valuable to a major OTA.  Here, the associated risk carries far more upside than with major OTAs.
  2. With major OTA’s experiencing difficulties in the market, the stakes for maintaining a strong competitive advantage are now higher than ever.  This means potential acquisitions of niche OTAs like carry even more leverage today than ever before…

Oveedia continues to make inroads in Central America and the Latin countries in the Caribbean.   As the market conditions continue to develop in our favor, we become more enthusiastic daily about our future potential for growth and acquisition.