Recent court rulings in Georgia and the state of Washington may force EXPE, PCLN and OWW to pay millions in damages and uncollected taxes. With state budgets in trouble, every state is going to go after theses companies for unpaid sales taxes and occupancy taxes. Not only market participants underestimating the potential taxes due, there also seems to be under appreciation of the impact of taxes on ongoing profits.

Consider scaling in short sell positions in EXPE around $15.6, PCLN around $ 110.40 and OWW around $2

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