Page 1093 - How to Make Money in Stocks Trilogy

Buying Checklist 79

Priceline was also rapidly expanding in a new market—Europe—with its
recent acquisition of Booking.com. That marked a new and growing oppor-
tunity, since European travelers were still just starting to go online to book
their hotels and airfare.
Expedia’s main “new” change was to its service policies and fees—done
primarily in reaction to steps Priceline had taken earlier. It hoped to attract
more travelers by eliminating cancellation fees for hotels, car rentals,
cruises and most airline tickets.

Are Mutual Funds Heavily Buying the Stock?

Accumulation/Distribution Rating
Priceline.com Expedia
A B

No. of Funds Owning Stock in Prior 4 Quarters
Quarter Priceline.com Expedia
Sep-08 654 761
Dec-08 632 727
Mar-09 716 740

Jun-09 773 795

With an Accumulation/Distribution Rating of B and rising fund ownership,
Expedia clears the institutional sponsorship criteria in the Buying Checklist.
But here again, Priceline’s institutional demand is even stronger: It is actu-
ally being more heavily bought by fund managers.

What Is the Stock’s Overall Strength?

Composite Rating
Priceline.com Expedia
99 95

Expedia’s 95 Composite Rating was strong, showing it was in the top 5% of
all stocks. But you’re looking for the best of the best, the true market lead-
ers. And Priceline’s 99 Composite Rating meant it was in the top 1%.