Play Miss Management

Travelzoo Options Play: Missed Earnings Creates Opportunity to Profit on ...

When a highflier like Travelzoo ( TZOO ) misses earnings, the aftermath is generally not pretty. In the two weeks prior to its earnings release, Travelzoo shares gained about 15% as investors were expecting robust earnings like the company announced in the previous quarter. When investors learned that the company not only missed the bottom line by nine cents (0.30 versus 0.39) but that even the top line was lighter than expected , Travelzoo's shares were crushed, falling 30% the next day. At $55, the shares are about 45% off of the 52 week high, but still up nearly 40% from the start of the year and more than triple the level they were at just a year ago. At current levels, shares still trade around 35x 2011E EPS and ~23x 2012E EPS. While I wouldn't go so far as to say the shares are a steal at current levels, I do feel that there is a unique opportunity to profit off of the implied volatility in Travelzoo shares. Given the massive premiums in the options, there is a great play here that could generate a 200% return on invested capital over the next nine months with considerable downside potential. Also, in my opinion, though analysts seem to be doing a good job estimating current year earnings, I think most analysts are not giving the company full credit for next year's potential. This is all the more true given the doubts arising in investors' minds following the earnings disappointment. Let's look at the disappointment first. Analysts were expecting 39 cents on $39 million of revenue. Not only did the company miss by nine cents due to higher than expected spending, but it even missed the top line by $1.4 million. The higher spending seems to not have been properly communicated by management. Apparently management believes it indicated that it would be running some TV ads as a test. Unfortunately, investors did not realize the results would be so horrible - $2 million in ad spend with no positive results! Also, given the fact that Travelzoo does not provide forward guidance, management could have done a better job in communicating that it will be investing in the Local Deals rollout. That said, I'm not sure how investors could assume that the company would build a $100 million revenue run rate business in less than a year with no investment. Its only appropriate that the company had the biggest jump in employees in its history.

[WATCH]: Let's Play Miss Management – Season 5-1

“The Lady Upstairs” Required Goals: – Denise: Earn $70 to meet budget goals. – Brooke: Do more work than anyone else in one day. – Winston: Zone out at the arcade machine for 90 seconds. – Winston: Don’t let anyone else do any technical tasks for one day. – Denise: Chat with Nadine at the water cooler for 60 seconds. Optional Goals: – Winston: Keep the radio and AC running at the same time for 80 seconds. – Brooke: Finish 30 tasks of any kind. – Brooke: Run on the treadmill for 120 (?) seconds. – Mahavir: Chat with Ashley at the water cooler for 90 seconds. Brooke is the last new employee that will work with you. She’s good with all tasks, but she stresses quite quickly, even if there is nothing stressing her. However, she can become your best employee if you use the Choco-Cafficinos from OfficeTown… Now would be a good time to practice juggling employees if you haven’t done so already. Send Winston to the arcade, Nadine to the water cooler and Brooke to the treadmill, and start putting tasks on Winston’s and Brooke’s desks (give Winston only technical tasks and Brooke everything else). Go to OfficeTown and put a Choco-Cafficino on Brooke’s desk as well. If you have nothing to do, chat with Nadine. Getting a diet soda from OfficeTown will help you give tasks out faster, and it’s a good way to get food and drinks to your employees in time as well. When Denise gets stressed, send Nadine, Brooke and Winston back to their desks and have them do the tasks.

School is making me miss EVERYTHING good!!!! The play Stripped, Robin Thicke... Time management sucks.

@ Let's hope Eagles don't miss out on home time in play offs or on play offs altogether by a point. Joke management!!

I want to play 'Miss Management' again. Is it available in SG stores?

Preschool classroom management, 150 teacher-tested techniques

Miss Carolyn looked across the playground as Mason, sobbing, approached her. " Billy pushed me out of the sandbox, and he says I can't play," he cried. ...

The works of William Shakespeare

The next memorable performance of this play was on October 30th, 1811, ... On February 8th, 1816, Miss O'Neill made her first appearance in the part at ...

Men and women of the time, A dictionary of contemporaries

In 1875 Miss Terry was engaged by Mr. Bancroft to play at the Prince of ... On Mr. Irving taking the management of the Lyceum Theatre, ho was enabled to ...

Country life

Indeed, nothing was left undone by the management to decorate the play. ... There is a novelty for us in the casting of the play; Miss Lena Ashwell, ...

The publishers weekly

Says he : 'Read the book Miss Lulu Bett. See the play Miss Lulu Bett. ... itself under the management of Marion E. Dodd, has taken on new responsil>ility in ...