On The Beach Group (OTB.L) is an online retailer of short-haul beach holidays. The company markets the On the Beach brand to the UK, and the International segment, which includes Sweden activity through Swedish Website (eBeach.se). It offers packaged holidays with options to book single element products, such as flights or hotels. Its technology platform enables customers to package the constituent components of their holiday, including flights and hotels, and transfers to customize holidays from flight and hotel combinations.
Its search facility connects customers to suppliers of travel products. Each travel product is booked separately. The Company is independent from airlines and hotels, so that it offers customers a range of flight and hotel products bookable through online channels, including desktop, mobiles, tablets, and applications and over the phone.
On The Beach Group (OTB.L) was mentioned favourably here on December 13th. Link here to view that article. Although the share hasn’t seen the high percentage moves of a Sopheon or a Victoria both the technical and the fundamental position have improved. The chart is shown below, the share is undervalued and growing earnings strongly.
Since December 13th OTB has pulled back and kissed the high made in August 2016 and is now pushing northwards at the 2017 high. The 52 week high is at 300 and above this level OTB can break strongly towards 400p which is the VectorVest valuation.
Although OTB hasn’t done much since the initial blog entry, the technical and fundamental position has improved and the shares look bound much higher.
OTB should be considered by aggressive investors only as the relative safety (RS) of both below 1 on a scale between 0 and 2. Risk management is important in all financial trading but is especially important in low RS counters.
David Paul
February 28th 2017
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