Friday, March 5, 2010

Analysis of InteractiveCorp Spinoffs


Spinoffs represent one of the greatest opportunities for diligent investors, particularly when the spinoff occurs prior to a meltdown in the equity markets. No better example illustrates this point than looking at the four entities spun off from InterActiveCorp (Ticker: IACI) on August 8, 2008. While each of the four companies: Ticketmaster (now part of Live Nation), Interval Leisure Group, Home Shopping Network, and Lending Tree declined between 75% and 87% from their initial spin-off price, all have been at least four baggers off their respective lows. Home Shopping Network has been the real star, appreciating by a staggering 1800% off its $1.44 low hit on December 8th, 2008.

No comments:

Post a Comment