Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[Joe Stocks]

EXPE- What I see here is that Barry Diller is wanting to buy EXPE with his own inflated stock. Recent action has been kind to this group but now the market is looking closer to what it will pay for these guys and their growth rates. I think Diller sees that EXPE and ROOM and ticketmaster are worth more under his umbrella than his investment in them individually. He can hide the limitations of these issues by co-mingeling them in his empire while increasing his USAI's growth rate. I don't see the added value nor does the street it appears. I think the deal puts a ceiling on EXPE's gains. I shorted in pre-market because it appeared the premium would be quickly eaten up by a drop in USAI price. After AOL I don't think the street looks as kindly on these buys. I covered half of my position nearer the close. All this said, I think Diller is making a good move as they are great brand namesfor the future. My problem is just current valuations and what the street will pay for it.

Joe