TravelNow.com looks at future alternatives

The fact that Springfield-based TravelNow.com Inc. has retained Baltimore-based financial adviser Legg Mason Wood Walker Inc. has nothing to do with the recent decline of the company's stock, according to Jeff Wasson, TravelNow's chief executive officer.

TravelNow's stock price dipped the week of Oct. 11 from $10.75 to $4.69. The week of Nov. 22, the company's stock price was $3.06 per share. It dropped to 78 cents per share Nov. 29, and was $3.06 Dec. 6.

Wasson said the dips in TravelNow's stock are the result of external factors.

"There was a slide that began several weeks ago, or maybe months ago. Originally, it was attributable to significant shareholders receiving margin calls ... when banks have to get their money back that they lent these people, and (stockholders) are forced to liquidate, to sell the stock," Wasson said.

But Wasson said while he knows stock prices reflect the value of a company, TravelNow's stock prices are not an indication of how the company's doing. TravelNow's retention of a financial adviser isn't a sign of trouble for the company, he said.

"It's too bad that it's timed with what's happening in the market, but the reality of it is, we're not (looking at) selling because we're forced to ... the company has all the resources it needs to continue, but with all the significant interest from companies much larger than we are ... (looking at options) really is an opportunity to see ourselves aligned with incredibly strong worldwide partners," Wasson said.

Wasson said TravelNow.com's board of directors will work with Legg Mason Wood Walker Inc. to look at several financing options, including a potential sale, asset sales, new equity partners and joint ventures.

Charles Ladd Jr., a local investment representative with Edward Jones Company, said whenever there is any type of uncertainty, people are less likely to be comfortable with their investments in the market. He said right now, there are several factors affecting the market.

"The political scene is an uncertainty, what Alan Greenspan is going to do with interest rates is uncertain," Ladd said.

Other uncertainties right now include the Euro, conflict in the Middle East and energy prices.

"You throw all these things in there, and it may cause people to be uncertain about the market," he said.

But Ladd added that investors should use this time when the market is down to diversify their portfolios.

"There's a lot of companies ... right now, that are (down) 60 percent and 70 percent because of uncertainty ... it's a good opportunity for people," Ladd said.

Wasson added that TravelNow isn't in the same category as other dot-coms that are in trouble or are going out of business.

"A lot of those companies had business plans and businesses that don't make sense now and didn't make sense (in the beginning). This company has a business plan that we've been implementing since 1995," Wasson said.

Ladd said people need to be careful not to put all dot-com companies in one category.

"They're not all the same, and how volatile their stock price is based more on what the public's perception of that investment value is versus what the company can earn. It's simply a matter of if people think that a company ... is going to make a lot of money, then they're going to want to invest in that company," Ladd said.

But he said the reception of dot-com companies in the stock market is different than it is for brick-and-mortar companies, those that have actual physical locations.

"If they can't touch it or feel it, it's hard for people to have a perception of what that company is worth, how much that company can make and where that company is going," he said.

Wasson said he hasn't received any specific offers for TravelNow that he can comment on, but he said the interest is definitely there and that's why the company's exploring its financial options.

"We didn't do this blindly. We have knowledge on our part of interest so we felt the time was right because of the interest ... from a variety of different parties," he said.

Wasson said travel still accounts for more than half of all online commerce and TravelNow's growth is "right on target."

On Nov. 29, TravelNow reached the milestone of 1 million online hotel reservations in a 12-month period. The company also recently launched service in Europe.

Wasson said because the company is doing well, it can explore financial options.

He added that there are more online travel providers now than when TravelNow began operations, but competition isn't a bad thing for the company, which employs about 105 people.

"Part of what we do is provide technology for other Web sites to sell travel online. So, the proliferation of online sites that sell travel is actually a benefit to us ... we've helped to create that," he said.