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Orbitz Labor Cost Paradox


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Orbitz (NYSE:OWW) reported poor Q4 results but improved YOY. Reviewing the cost items you will note a decrease in labour cost offset by a slight increase in contract labor. The factor is 5 to 1. Yet net profits were poor. Management does not speak to the issue. Have they maximized employee productivity? Are further gains available or contemplated?

Sounds of silence on the issue. Serious oversight by management to not address the issue. Are they awake or snoozing on the point.

Disclosure: “George Gutowski” writes from a “caveat emptor perspective” I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours.