This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"IAC/InterActiveCorp (IACI) -- my top stock pick for the coming year -- is the company behind Match.com and Ask.com," says David Fried.

The editor of The Buyback Letter explains, "The company also operates more than 50 other website properties that make up the 8th largest network of websites in the world, with 246.3 million unique visitors.

Continue reading Top Picks 2011: IAC/InterActiveCorp (IACI)

Top Picks 2011: IAC/InterActiveCorp (IACI) originally appeared on BloggingStocks on Wed, 05 Jan 2011 15:00:00 EST. Please see our terms for use of feeds.

Unless you already have a major foothold in the search engine market - or an amazing, disruptive technology that can make the world take notice - there isn't much point in staying. Competing with Google (NASDAQ: GOOG) is hard enough, even when you're Yahoo (NASDAQ: YHOO) or Microsoft (NASDAQ: MSFT) ... and, apparently, when you're IAC/InterActive Corp (NASDAQ: IACI). Barry Diller is ready to give up Jeeves, but only if asked nicely.

Diller's presence in the search space is Ask.com, ranked #4 behind Google, Yahoo and Microsoft's Bing. With a substantial gap between first and second, fourth barely registers at all. Ask.com has only a 2% U.S. market share, according to Hitwise, more than 60 percentage points behind the industry leader.

Continue reading Would anybody buy Jeeves? Ask might go on block

Would anybody buy Jeeves? Ask might go on block originally appeared on BloggingStocks on Wed, 28 Oct 2009 15:30:00 EST. Please see our terms for use of feeds.

Expedia, Inc. (NASDAQ: EXPE) is recently up $1.77 to $23.51. Shares are higher on rumors that Barry Diller wants to take EXPE private.

EXPE has a market cap of $6.3 billion with long term debt of $740 million and cash of $697 million. EXPE reported 2007 annual revenues of $2.6 billion. EXPE call option volume of 12,488 contracts compares to put volume of 1,045 contracts. EXPE June option implied volatility of 45 is above its 26-week average of 37 according to Track Data, suggesting larger risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option Update: Expedia call volume heavy on rumors of Barry Diller LBO originally appeared on BloggingStocks on Wed, 28 May 2008 11:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK.A) and Mars are in talks to purchase Wm. Wrigley Jr. Co. (NYSE: WWY) for over $22B, the Wall Street Journal reported. An announcement may come as soon as today.
• The Royal Bank of Scotland Group Plc (NYSE: RBS) will start the integration of ABN Amro Holding's (NYSE: ABN) investment bank into its global markets division, the Financial Times reported. This process will most likely result in the paring of 7,000 jobs.

• According to the New York Post, IAC/InterActiveCorp. (NASDAQ: IACI) Chairman Barry Diller is expected to meet with his board this week to restart the process of breaking up his company into five separate pieces, sources said. At the same time, Diller and Liberty Media Corporation (NASDAQ: LMDIA) Chairman John Malone are continuing to talk about a deal that would trade one or more of IAC's assets for Liberty's ownership stake in IAC.
• The UK Times has learned that Numis Securities, the stockbroking group headed by Michael Spencer, is in "advanced talks" to buy the UK equities business of The Bear Stearns Companies Inc (NYSE: BSC). Numis may look to hire a team of 25 from Bear.

Newspaper wrap-up: Buffett, Mars to buy Wm. Wrigley originally appeared on BloggingStocks on Mon, 28 Apr 2008 08:40:00 EST. Please see our terms for use of feeds.

Barry Diller has won his dispute with John Malone. Malone's Liberty Media (NASDAQ: LCAPA) owns a a large piece of the company that Diller runs, IAC/Interactive (NASDAQ: IACI). Diller has the right to vote those shares under a long-standing agreement.

Diller has decided to break IACI into five companies because the businesses in the firm do not have significant relationships to one another. Malone wanted to block the break-up and filed suit in court.

According to MarketWatch, "Vice Chancellor Stephen Lamb ruled Friday that "Liberty has failed to demonstrate that Diller has breached or threatened to breach any contractual duty he owes to Liberty," according to Lamb's 78-page opinion."

Diller can now complete his plans.

That leaves open the question of whether IACI is worth more in pieces than it is as a conglomerate. The firm's stock trades at $20, near its 52-week low and down from the period high of over $39. Some of the company's divisions, especially Lending Tree and HSN had tough years in 2007. These would get very low valuations as independent operations and might not make up for the value of more attractive operations like Ask.com

Diller may have gotten his way, but it is not clear that it will help shareholders.

Douglas A. McIntyre is an editor at 247wallst.com.

Barry Diller wins (IACI) originally appeared on BloggingStocks on Sat, 29 Mar 2008 06:07:00 EST. Please see our terms for use of feeds.

InterActive Corp. (IACI) planning to dump Ask.com's search technology? originally appeared on BloggingStocks on Mon, 03 Mar 2008 13:05:00 EST. Please see our terms for use of feeds.

Continue reading Barry Diller is in top form in fight with John Malone

Barry Diller is in top form in fight with John Malone originally appeared on BloggingStocks on Tue, 29 Jan 2008 09:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• With regulators, politicians and rating firms biting at their heels, Countrywide Financial Corporation (NYSE: CFC) believed that it had no choice but to approach Bank of America Corporation (NYSE: BAC) last month about a merger, reported the Wall Street Journal. That fear led to BAC's $4B takeover of Countrywide, the Wall Street Journal reported.
• The Wall Street Journal reported that John Malone's Liberty Media Corporation (NASDAQ: LCAPA) moved to take control of IAC/InterActiveCorp (NASDAQ: IACI) from Barry Diller, nominating a series of directors for board members it is looking to replace.
• According to the Financial Times, European public health specialists have found "significant resistance" to Roche Holding Ltd's (OTC: RHHBY) widely purchased influenza antiviral medicine Tamiflu.

• Shares of Britain's third-largest drug maker, Shire Plc (NASDAQ: SHPGY) plummeted yesterday to a two-year low on concerns about demand for its attention deficit hyperactivity disorder treatment for children, Vyvanse, the Telegraph reported.

Newspaper wrap-up: Potential crackdowns forced Countrywide to seek out Bank of America originally appeared on BloggingStocks on Tue, 29 Jan 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that IAC/InterActiveCorp's (NASDAQ: IACI) CEO Barry Diller is in talks with outside investors or possible buyers for all four companies that he plans to spin off, according to a person familiar with the situation.

• Biogen Idec Corporation (NASDAQ: BIIB) may be considering an offer for Genmab (OTC: GNMSF), according to the UK Times; GlaxoSmithKline Plc (NYSE: GSK), which has a license for Genmab's HuMax, may have to counterbid in order to protect its position.
• The Economic Times reported that Sears Holdings Corporation (NASDAQ: SHLD) may be interested in launching operations in India.

• According to a source close to Yahoo! Inc (NASDAQ: YHOO), CEO Jerry Yang has decided to go forward with layoffs at the company. The source said that the layoffs will come in the 1,500-2,000 range instead of the "hundreds" reported elsewhere, the Silicon Alley Insider reported.

Newspaper wrap-up: IAC in talks with possible buyers for units originally appeared on BloggingStocks on Mon, 28 Jan 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Liberty Media Corporation (NASDAQ: LCAPA) filed a lawsuit in Delaware against IAC/InterActiveCorp's (NASDAQ: IACI) Barry Diller in an attempt to block Mr. Diller from completing the spinoffs of several units on terms that could dilute Liberty's voting power; the suit follows a suit filed by IAC against Liberty seeking to complete the divestiture on its own terms, the Wall Street Journal said.

• The Evening Standard learned that billionaire Wilbur Ross is in takeover talks with AMBAC Financial Group Inc (NYSE: ABK) and that a deal could come within the next two weeks.

• According to analysts, TheDeal.com's Dealscape blog reported that the troubles at WellCare Health Plans Inc (NYSE: WCG) could lead to a sale of the company after the departure of the company's three executives.
• Citing a source close to Advanced Micro Devices Inc (NYSE: AMD), CRN.com reported that rumors of a merger between the company and International Business Machines Corporation (NYSE: IBM) "is nothing but speculation." A rumor in Mergermarket, which caused AMD's share price to spike almost 11% on Wednesday, said IBM's microelectronics division could merge with AMD "possibly in the near term."

Newspaper wrap-up: IBM-AMD merger rumor is 'speculation gone amok' originally appeared on BloggingStocks on Fri, 25 Jan 2008 08:00:00 EST. Please see our terms for use of feeds.

• Analysts' Estimates: Earnings $1.46; Revenue $9.46 billion
• Good News: People continue to love their iPhones and iPods. iTunes leads the way in digital media. Even the Mac is gaining sales thanks in part to the clever ad campaign. Overseas sales should be strong.
  
• Bad News: Steve Jobs & Co. may be vulnerable to a slowdown in the economy. Gadget freaks may not be able to afford the latest gizmos if they are worried about paying their mortgages. Like Google investors, Apple shareholders will bolt at the first sign of trouble.

Continue reading Will tech stocks get out of their funk?

Will tech stocks get out of their funk? originally appeared on BloggingStocks on Fri, 18 Jan 2008 13:40:00 EST. Please see our terms for use of feeds.

Ask.com CEO relinquishes title amid InterActive shakeup originally appeared on BloggingStocks on Thu, 10 Jan 2008 13:22:00 EST. Please see our terms for use of feeds.

Barry Diller digs AOL. The media mogul spoke of his devotion to our corporate owners last week at a conference sponsored by Advertising Age when he was asked if he would ever buy the business if Time Warner Inc. (NYSE: TWX) ever was interested in selling.

"We've talked over the years about our interest in AOL and never been able to get Time Warner to engage with us." Diller is quoted as saying (via DealBook). "I've always said AOL is great opportunity for somebody. When and if Warner doesn't want it, I'll certainly be at the door."

A couple things to keep in mind. First, Diller's talk may just be that since Time Warner hasn't actually said it wants to sell AOL. Second, he's got his hands full already with his plans to split up IAC/InterActiveCorp (NASDAQ: IACI). Third, Diller would have to fight the likes of Google Inc. (NASDAQ: GOOG) and Yahoo Inc. (NASDAQ: YHOO) if AOL were ever put up for sale.

Still, it's nice to know that AOL, which has long been the bane of Time Warner's shareholders, has at least one high-powered fan.

Barry Diller digs AOL originally appeared on BloggingStocks on Wed, 14 Nov 2007 11:12:00 EST. Please see our terms for use of feeds.

IAC planning a comedy news website called 23/6 originally appeared on BloggingStocks on Fri, 09 Nov 2007 12:05:00 EST. Please see our terms for use of feeds.

Barry Diller is buying Expedia, should you? originally appeared on BloggingStocks on Wed, 07 Nov 2007 11:42:00 EST. Please see our terms for use of feeds.

"We've been a complex enterprise almost from the very beginning 12 years ago, with hundreds of transactions over those years," he said. "And while we've created a lot of value, I've always believed our complexity and many mouthfuls of sentences to explain who we are and what our strategy is have hampered clarity and understanding with all our constituencies, particularly investors."

Plus, the confusion was costing Diller money.

Continue reading IACI split is a stunning reversal by Barry Diller

IACI split is a stunning reversal by Barry Diller originally appeared on BloggingStocks on Mon, 05 Nov 2007 10:10:00 EST. Please see our terms for use of feeds.

InterActiveCorp (NASDAQ: IACI) announced the plan to separate IACI into five publicly traded companies:

1. HSN, will include business comprising IACI's retailing segment.
   
2. Ticketmaster.
   
3. Interval International, which will include CondoDirect, Resort Quest Hawaii and VacationSource.
   
4. LendingTree, which will include RealEstate.com Domania, GetSmart, Home Loan Center and iNest, and
   
5. IAC media & advertising, Ask.com, Bloglines, City Search, Cursor Mania, Evite, Excite, insiderpages, iWon, My Fun cards, Black Web Enterprises Shoebuy.com, Match.com.
   

Barry Diller, Chairman and CEO says, "It makes nothing but sense to me to reorganize the whole."

IACI over all option implied volatility of 33 is above its 26-week average of 27 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: IACI volatility up after Diller announces splitting company originally appeared on BloggingStocks on Mon, 05 Nov 2007 09:59:00 EST. Please see our terms for use of feeds.

Barry Diller's daily life with IAC/InterActive (IACI) originally appeared on BloggingStocks on Mon, 24 Sep 2007 13:10:00 EST. Please see our terms for use of feeds.

IAC/InterActiveCorp (NASDAQ: IACI) released second quarter 2007 results , reporting $1.5 billion in revenue, representing a 6% rate of growth over the prior year. The company also posted $136 million in Operating Income Before Amortization, compared to $165 million in the year ago period. Adjusted EPS was $0.31, compared to $0.32 in the year ago period.

Operating income fell 33% to $54.4 million.

On a segment basis, revenue at the big retailing operation, which includes HSN, was up only 1% to $701.4 million. Operating income for the division fell 31% to $34.5 million.

Revenue in the transaction segment, which includes TicketMaster, was up 2% to $441.9 million. Operating income fell 36% to $48.5.

The media and advertising segment, which includes Ask.com, had revenue growth of 33% to $174 million. But, the segment had a loss of $10.7 million.

It looks like the small conglomerate is not doing very well and Ask.com does not appear to be bringing home the bacon.

Wall Street could fairly question why Barry Diller has all of these companies under one roof. They do each other very little good.

IACI stock was indicating down 4.6% just before the market opened at 9:26 am.

IAC Interactive earnings: Bad news all around originally appeared on BloggingStocks on Tue, 31 Jul 2007 10:20:00 EST. Please see our terms for use of feeds.

Expedia Inc. (NASDAQ: EXPE), the online travel company, announced that it would buyback 116.7 million shares. That was in June. The company's shares quickly jumped from under $24 to $29.

Today, the company announced that the share purchase program would be reduced to 25 million shares. The stock will be bought in a price range of $27.50 to $30.00. On the announcement, Expedia's price promptly dropped to $26.50, about 9% down.

Bloomberg quotes Expedia Chairman Barry Diller as saying, "The terms available to us in the current debt market environment were simply unacceptable." The company would have added $3.5 billion in debt to cover buying back the stock.

What happened? Well, credit is getting tighter, but it is never too tight for really attractive deals. The company is not exactly minting money. In the last reported quarter, net income was $38 million on revenue of $551 million. Interest payments for the quarter were about $11 million. With the additional $3.5 billion of debt on the books, interest payments could have gone up as much as 7 times. And there would not be a good enough ratio of operating income to the sum of the old debt plus the new borrowing Expedia would have made to buy the 116.7 million shares.

The simple reason that there may not have been debt available at good interest rates is that earnings would not support it.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Expedia: A misstep for Barry Diller originally appeared on BloggingStocks on Mon, 23 Jul 2007 12:28:00 EST. Please see our terms for use of feeds.