Hostelworld Share Discussion Threads

[thomshrike] 27/12/2018 11:23

Woodford is now out. And you can sense that the stock is finally showing some relative strength. Also the presentation of the new business strategy at the CMD was well received by the financial community, even if it means some additional investments before growth picks up steam in 2020. At this valuation, company is also an obvious takeover target - my guess would be Ctrip or Expedia.

[babbler] 30/11/2018 13:36

Once done this should rocket right?

[trytotakeiteasy] 30/11/2018 11:33

Woodford from around 10% to less than 5%. An aggressive seller if ever there was one.

[modform] 30/11/2018 10:13

Been buying here around 170p ish, and added yesterday, it looks incredibly cheap

[trytotakeiteasy] 20/11/2018 11:13

The lack of management buying shares speaks volumes IMO.

[kemche] 20/11/2018 11:00

Where's the bottom? Is Woodford still dumping?

[topvest] 14/11/2018 21:27

Why you would sell this from an Equity Income Fund to buy more Purplebricks and such blue-sky rubbish is beyond me!!

[topvest] 14/11/2018 21:25

Its really surprising how low these have gone. Starting to get interested in a re-entry. Woodford seems to sell the good stuff and double-up on losers. I think its best to do the exact opposite of what he is doing. He's lost it.

[riverman77] 14/11/2018 11:09

He still has around 9% I think. I have added a few Woodford names that have been clobbered and got very cheap - Forterra and Burford. I'm now looking at HSW - from my initial research it looks like a solid little company with a good niche and something of a network effect. Now close to 10 pe and over 7% yield, with net cash. Can't see any major negatives. The last reports have talked of increased competition, but I can't see who that would be (the big players such as Expedia don't really specialise in this area and I couldn't find any direct competitors of scale). This must surely be a good long term hold.

[aishah] 13/11/2018 18:31

The sooner Woodford clears the better. He's suffering a huge outflow. No longer a star imo

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[aishah] 28/9/2018 09:32

Michael Cawley, Chairman bought 61,000 @ EUR 2.55 yesterday.

[trytotakeiteasy] 22/9/2018 00:51

All the big institutions have been bailing. That is saying something. Why sell aggressively. Oh well we will have to wait for the profit warning to formally be told what is wrong!!!

[its the oxman] 21/9/2018 10:34

Chart says profit warning.

[trytotakeiteasy] 18/9/2018 18:40

IC tipped it at £3... they are usually the kiss of death..

[honestjim2] 18/9/2018 08:09

Its got Momentum but the wrong way! A total disaster!

[trytotakeiteasy] 14/9/2018 12:47

Maybe they should change their name to the "negative momentum investor." Perhaps more accurate.

[honestjim2] 14/9/2018 11:31

trytotakeiteasy,

The Momentum Investor was the same. Tipped near the top. The fall is relentless. All the way down to £1.80 is my guess.

[trytotakeiteasy] 13/9/2018 18:15

I should of known this would crash after the IC buy tip. They are the kiss of death.

[trytotakeiteasy] 07/9/2018 11:10

hedgemaniac - on face value it looks very cheap. Cash will be about 10% of the market cap soon and price to free cashflow is approaching 10X. However, everyone hates to read the word "competition" in updates. The last update said that - "The market is...increasingly competitive.":

Hostelworld's outlook statements:

April 2018 update - "This new product [free booking cancellation] together with increased technology investment will substantially improve our offering to customers and our competitive position and underpin the Board's confidence that we will see bookings growth in 2018 and beyond."

June 2018 update - "While competition has increased into Europe and we face headwinds from adverse foreign exchange movements and we have limited visibility on bookings in the forthcoming peak season we reaffirm our expected earnings estimate for fiscal 2018."

August 2018 update - "As previously reported, the market, particularly in Europe, is increasingly competitive. In addition the World Cup and the unusually hot weather in Europe have also led to a softness in bookings in the peak summer months of July and August. If these trends continue like for like, growth in Group bookings is likely to be flat for the full year given the expected declines in our supporting brands."

[hedgemaniac] 06/9/2018 20:26

Its hard to know where it will settle. But the only 'crime' they committed was getting a new CEO and flat sales in the first quarter. There has to be some upside developing now.

[trytotakeiteasy] 21/8/2018 16:35

Quant - I guess I am someone who likes to just find good stocks and hold them. With that in mind I probably need to go for higher quality stocks that Hostelworld. It is a cyclical business and it is always unclear whether its niche is defendable against the bigger boys over the long-term.

Stockopedia- Good point there. Analysts are usually slow to react and so when you start to see earnings forecasts falling it can be time to exit.

[quant_investor] 21/8/2018 11:47

Hope it turns round for you and the remainder of your PF is offsetting the fall (assuming you still hold)

FWIW looking at changes in broker eps estimates through Stockopedia is a useful way of getting an early warning for lack lustre trading

[trytotakeiteasy] 21/8/2018 11:39

quant - fair point. You were right to sell.