NASDAQ:IACI
$21.60
(2/9 1:33PM)
+2.1%
| Open | $21.61 |
Mkt Cap | $2.5 Billion |
| High | $22.5 |
52Wk High | $22.28 |
| Low | $21.54 |
52Wk Low | $13.23 |
| Volume | 2.2 Million |
Avg Vol 10D | 1.7 Million |
Ockham's Rating/Recommendation Summary
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IACI Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, IACI the high and low end of the Price to Sales per share ratios are 1.22x and 0.72x respectively.
Notice that IACI's current Price to Sales per share ratio is 2.06x, which is well above its historical average. This means that IACI looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 111% just to return IACI to its historical average.
IACI Cash Earnings
Looking at IACI specifically in their Cash Earnings capabilities, Ockham views IACI as significantly below its historical average multiple of Cash Earnings. Looking at the last 8 years we can get a good understanding of what investors have grown to expect from IACI. For example, IACI's Cash Earnings ratio per share has fluctuated between 7.15 and 11.69 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where IACI is with respect to prior business periods.
Now that IACI’s current price is $21.17 and its Price to Cash Earnings ratio is 7.56, we are very positive on its outlook from the cash earnings perspective. In fact, IACI is now trading a full 20% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why IACI has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
IACI Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. IACI may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As IACI more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
Did You See IACI's CEO Diller on Tech Trader Daily-Barron's?
CEO's are the strategic leaders of their companies, so any mention of them will garner special interest from us.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe IAC/InterActiveCorp will perform just about the same as the index. At Ockham, we are not advising buying IAC/InterActiveCorp at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IACI has been less covered in the news compared to the rest of our universe of stocks. Our valuation of IACI has become less favorable recently, and we have seen it necessary to downgrade the stock.
“… IAC/Interactive (IACI), the Barry Diller-piloted Internet conglomerate, this morning posted Q4 results that beat Street expectations. The company reported revenue of $367. …”
Zero Hedge Picks Up on IACI News After Six Months
It has been sometime since we noted a news story about IACI, which makes the news itself worthy of mentioning.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IACI has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying IAC/InterActiveCorp at the current price level because according to our methodology it is not supported by the fundamentals. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe IAC/InterActiveCorp will perform just about the same as the index. Our valuation of IACI has become less favorable recently, and we have seen it necessary to downgrade the stock.
“… Earnings: AFG, AGCO, BIIB, CHD, CNC, CXW, DIS, EOG, IACI, QUIK, TAP, TCO, UBS, UDR, VMC, WMG, XL. RECENT RATING ACTIONSALLIANT TECHSYSTEMS INC (ATK)MGM MIRAGE (MGM)NCR CORP ... …”
IAC/InterActiveCorp and Alpha Discussed on Seeking Alpha Wall St Breakfast
Unlocking profits and finding alpha are goals that every investor shares, and recently Seeking Alpha Wall St Breakfast talked about generating profit with IACI.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Due to deterioration in our valuation, we downgraded IACI as of Sunday, February 07, 2010. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; IACI has received less coverage from the financial media in business television and blogs.
“… PM 3-Yr Note Auction 5:00 PM ABC Consumer Confidence Index Notable earnings before Tuesday's open: AGCO, AGU, ANR, BIIB, BJS, CAM, CE, CTSH, CVH, IACI, KO, NYX, PHM, TAP, TIN, ... …”
IAC/InterActiveCorp (IACI) Discussed on CNBC's Squawk On The Street
IAC/InterActiveCorp is in the news. Find out how this impacts IACI trading on Ockham Research.
>> we used to call it yakky and barry got mad and yelled, it worked because we have not call called it IACI. They like me more than me. >> thank you, joe. >> you're welcome. >>> up next, the word on the street, the buzz beyond the
“… >> we used to call it yakky and barry got mad and yelled, it worked because we have not call called it IACI. They like me more than me. >> thank you, joe. >> you're welcome. >>> up next, the word on the street, the buzz beyond the …”