Every day, the sun rises on Wall Street, and a plethora of
professional analysts wake to issue new opinions on stocks.
Here at the Fool, we use our "This Just In" column to examine
some of these picks -- and
the track recordsof the companies behind them -- so
individuals can make better investing decisions.
In addition to following professional banks, anyone can
use
Motley Fool CAPSto monitor the collective opinions of
more than 140,000 members, many of whom
demonstrate better investing insight than published analysts
do.
Enough top-performing CAPS members have turned bullish on
Universal Travel Group (AMEX: UTA) recently
to upgrade it from the two- and three-star
rankit has held for the past few months to a more
formidable
four
stars. A total of 103 members have given their opinion on
Universal Travel Group, with many of them offering analysis
and commentary explaining the recent optimism.
The Chinese travel firm did the dirty deed and issued a
3-for-1 reverse stock split in March, bringing its shares out
of penny stock level and allowing it to apply for membership
on an exchange. Once considered a death knell for companies,
investors are
growing more familiar, if not comfortable, with reverse
splits.
AIG (NYSE: AIG) recently did it;
Sirius XM Radio (Nasdaq: SIRI) once
considered doing it;
Priceline.com (Nasdaq: PCLN) successfully
pulled it off in 2003, and Universal Travel Group has been
gaining popularity in CAPSsince the move. Investors liken
it to Chinese travel services firm
Ctrip.com (Nasdaq: CTRP), but with a much
smaller market cap.
After posting strong first-quarter revenue growth,
Universal Travel Group followed up that act with 56% revenue
growth in the second, along with increasing gross margin and
a 76% jump in earnings. Many CAPS members applauded the sale
of its air cargo business, which helped to boost gross
margin. While domestic airlines like
Continental (NYSE: CAL) and
UAL 's (Nasdaq: UAUA) United still
struggle to fill seats, Universal Travel has bucked the
trend and reported strong demand from its air-ticketing
segment. It's also seen some benefits from China's stimulus
package and travel incentive policies and remains optimistic
in its outlook.
Do you think Universal Travel deserves its raised status?
Add your thoughts in the comments box below, or head over to
CAPS to rate it yourself. While you're at it, see what the
very best CAPS analysts
are saying
nowabout the company.
This article was originally published as
A Big Upgrade for Universal Travel Groupon
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