Yes I am an amateur and you are an anal pumper.............what happened to the $75.00 closing price...........I covered my short this morning and am doing fine.............Pizz off you Putz
None of what you think is important matters. Just look at the stock today.
Financial engineering is the most powerful force that drives a stock.
Guessing you'r just another amateur
Another delusional pumper..............Up $10 on a reorg.............look at the sales of the insiders in Oct...........I hold more value to that than some anal pumper or basher...........
Would you guys please stop buying this anytime it falls to $69.40? It's time to give back oh, about half the $9.50 IACI gained today. They just reorganized guys. Who cares?
I see your first post was the day your id was created. How's that short position working out for you? Merry Christmas!
70.44 today. Market does not appear to be seeing any real downside risk at all - at least at the present.
Dotcom. We have reached out to Google for comment, but have not received a response by press time.
We will conclude, for the purposes of clarity, by sharing a few selected videos of how IAC works with pirate sites to distribute the Ask toolbar:
We believe IAC will face similar challenges. Even if we give them the benefit of the doubt, this is a 6x EBITDA business. Without this channel, EBITDA drops to $160 million, and applying a 6x multiple gives a value of $960 million. The company has $200 million of net cash so the total value would be $1.16 billion. The current market cap is $4.7 billion so there is a 75% downside risk to IAC that has not been realized by investors. We believe a fair value for IAC is $14. There will also be knock-on effects from slowing cash flow that will affect other lines of business that are funded by their search division. If IAC is unable to finance their expenditures using ill-gotten gains, then IAC will be forced to cut investment in areas like other segments which will further reduce growth and apply pressure on their growth thesis. Like Babylon, IAC is at risk of losing three-quarters of its market cap overnight.
We see only two outcomes for IAC: either IAC is forced to shut down its illegal distribution partnerships, or IAC loses its Google deal entirely. In scenario one, IAC's revenue from search will drop from $1.6 billion to $1.36 billion. In scenario two, IAC loses its deal with Google entirely. If we assume they manage to strike or retain a partnership with Microsoft or Yahoo, then their search revenue would be lower by at least 30-40% due to poorer monetization of the Bing advertising platform. Add in the shut down of their illegal distribution partnerships, and we estimate revenues would shrink to $800 million/year, half of what management is guiding and what analysts have been baking into their models.