Rumors in the NY Daily News suggests recent weakness in shares of InterActiveCorp could leave the company vulnerable for a takeover. According to a source quoted in the article, eBay, Google or Yahoo could acquire the company.
HAHAHA. Are you kidding? No one in their right mind would pay the outrageous premium currently priced into this stock. Perhaps if they could get it for under $10 a share. IACI *could* arguably be worth $16-$17/sh in the next few years if the rosey projections come true. Get real.
They just reported $.05/share earnings for the quarter. Price is currently $31. Let's see, a PE of 31/(.05x4) = 155. What a bargain! Assigning it a comparable PE of 30 (reasonable for high tech/speculative companies) results in a current price of $6. Honestly, I would seriously look at purchasing some shares and assume the risk if that was IACI's current price.