Tuesday, July 16, 2013

PCLN: This 90-Bagger Could Double From Current Levels

Legendary stock picker Peter Lynch used to salivate over what he called 10-baggers -- stocks that increased 1,000%.

Admittedly, that's incredible performance, but nothing compared to the track record of Priceline.com (NASDAQ: PCLN), one of the largest online travel booking websites. Over the past 10 years, this dot-com gem has rallied more than 9,000%. That's a 90-bagger!

Shares have skyrocketed, from split-adjusted lows near $10 in 2003 to their current multi-year high above $914. While the biggest gains may or may not be behind it, short-term traders can still profit.

According to Morgan Stanley (NYSE: MS), there's still plenty of upside potential. In fact, shares could be the first dot-com to surpass the $1,000 mark -- a feat not even Google (NASDAQ: GOOG) has achieved.

Because of a growing appetite for travel based on the improving economy, Morgan Stanley has set a price target of $1,010. Technically the stock could go much higher with a long-term target near $2,000 if you're an investor rather than a trader.


PCLN Chart
Since the summer of 2012, the stock has moved steadily higher. In early May 2013, the shares successfully broke $774.96 resistance, and in doing so, completed a long-term basing pattern. The top of the base is marked by $774.96 resistance (which now acts as support) and the bottom is at previous support around $553. (more)
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