Stocks Flavored Pie(V)

I don’t know about you guys, but after a full day of sightseeing I can’t wait to get to my hotel room, take a shower and lay a bit in the bed. Could use an AC if it’s available, watch a movie or stay in a nice balcony with a view.

So clearly a hotel room is one important aspect of a vacation. Ok… depending on your preferences, it could be a RV, or camping site, etc. But for me definitely a room (despite my wife’s preferences in some cases).

In the same Niece-Marseille trip, we found a superb aparthotel, with the most relaxing (and big) bed and a shower so cool, we used the idea in our current apartment. After a hot day we just wanted to stay there, reading books, looking at the photos we took and planning the next day. In the morning we just went to the mess hall, bought some croissants and cheese, olives and tomatoes , got back in the apartment and ate on the balcony and relaxed with a coffee (which was free in the room).

Finding a hotel or a place to stay can always be a challenge. But we usually use platforms like Booking and Airbnb. So why not profit from this and “get some money back” every time we rent something (I would like to say we get some money back, but this is not entirely sure, the truth is that using the services of something you invest in shows the “customer interest” – business are made on the customer interest).

This article will be about why it is good to invest in Booking and Airbnb stocks. I am sure that with a good search we could find some real nice hotels or rentals stocks, but lets approach the problem at macro level and further down the road refine our PIE. Before we go to each of them, don’t forget to check the previous articles:

Booking Holdings Inc.

To use the MarketWatch definition: Booking Holdings, Inc. engages in the provision of online travel and related solutions. The company offers services through the following brands: Booking.com, KAYAK, priceline, agoda, Rentalcars.com, and OpenTable. It provides accommodation reservations including hotels, hostels, apartments, vacation rentals, and other properties. The company was founded by Jay Scott Walker on July 18, 1997 and is headquartered in Norwalk, CT. In this case, we are not investing just in housing, but in infrastructure also, so win-win.

BKNG stock is quoted at 2250  USD per share, at the moment I am writing this article and it comes after the fall from March. Looking at the graph from the last 5Years, it is already at All Times High. Doing a small technical analysis, it surpassed previous resistance level, so I am expecting a small correction to the 2100USD area  before launching again. I will invest as soon as I get the PIE started, regardless of the price.

This, is for me is confidence in their products, people are expecting the vaccine, already making plans for this years vacations and so on.

At this moment BKNG is not offering any dividends and I would definitely wanted some at a company this big. Maybe this will change in the future. One thing to mention is that Bookings is the 2nd largest travel company n the world and yes, it is included in The Vanguard Group.

Let’s put it in the shopping cart, as I have no more words to say for it.

Airnb

Airbnb is a hosting/rental service for your home or properties. We used it multiple times and we will continue to use it. Maybe in the future we will also be owners not just users (because why not…that’s why we have a Real Estate category on this blog).

What is interesting at Airbnb is the fact they launched last year on NASDAQ with an attractive deal. If I read correctly, if you were an owner, renting your house and had at least a contract in 2019 and a contract in 2020, you will get the opportunity to buy 200 stocks at the price of 68USD (the initial price offer). Not to mention that after lunch, the price skyrocketed to 150USD+, so you had a 14K USD profit from this deal.

Another article I read on Yahoo Finance, gives the prediction of reaching 232USD in 2021, so that is another 50% gain if you buy the stock now.

Bad news regarding them is that they have a 2Billon USD in debt, but on the positive side, they generate positive annual free cash flow, in the last 5 years (except 2020, and let’s be honest, it was a dead year for travel), and could pay the debt.

Some say that this stock is over-evaluated and maybe it is. But time will tell where it goes. I would like to think it has the same potential as Bookings, so no wonder if we will see it reach 2k USD in price.

On a technical analysis side, it looks to slip in a descended trend, that will probably go close to the initial price offering, before the reports settle in and switch to a ascended trend.

Adding it to the PIE, gives us a .75% increase to the ANR and it can be found under the ABNB ticker.

This is for today guys, I think we will have one more article coming soon in this series, at the end of which I will do the proportions for a better ANR, but also take into consideration the individual share price of each action, so every time we make a deposit, we will get a fraction.

Thank you all, you are wonderful! Stay safe!

Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.

P.S. Header Photo by Rio Lecatompessy on Unsplash

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