New Trade: Long Match Group ($MTCH) & Short IAC Interactive ($IAC)

By: ispeculatornew
Date posted: 04.14.2016 (4:05 am) | Write a Comment  (0 Comments)

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Today I am opening my 12th trade of the year between 2 stocks that trade at similar forward P/E ratios. I do usually stay away from recently turned public or spun off companies. I decided to make an exception here partially because there is a decent history of companies that were spunt out of IAC. As is always the case you can see the existing live trades here:

http://www.intelligentspeculator.net/livetrades

Let’s start off by looking at the numbers:

TickerNamePricePE RatioPE Next YearReturn YTDSales GrowthAnalyst ratingBook ValueBetaEarningsRevenue/ShareSales 5Y Avg GrowthEPS 5Y Avg Growth
MTCHMatch Group Inc10.62N/A11-23.9914.884.111.12N/A5/11/20165.84N/AN/A
IACIAC/InterActiveCorp47.4140.9911.75-22.553.94.1421.731.094/26/201638.9514.39N/A

The longer term numbers are not out for Match yet so I will only display the decelerating growth from IAC

IAC_MTCH_chart (3)

 

$MTCHLong Match Group Inc (MTCH)

Match Group is by far and away the leading player in the online dating world with brands such as Match, Tinder, OkCupid, PlentyOfFish, etc. It’s an extremely competitive segment but I do think MTCH has done a very solid job of trying so many different models assuring itself a decent position no matter how things evolve. Clearly, the top play right now is Tinder which should generate solid growth for the company. Currently MTCH isn’t available to trade as a contract for difference on most online cfd trading platforms, future growth however and the potential monetization
of Tinder may see it becoming available on these platforms

IAC_MTCH_chart (1)

 

Next earnings: May 11th 2016

Short IAC Interactive (IAC)

IAC has had a truly impressive record over the years when you look at some of the companies that have been sput out of Barry Diller’s IAC. That has though resulted in lower growth as it keeps spinning out higher growth segments. I’m not necessarily bearish about the company but I do think that the valuations of these makes MTCH a much more attractive valuation.

IAC_MTCH_chart

Just look at the chart of traffic from Google trends:

Next earnings: April 26th 2016

Disclaimer: This trade on MCTH-IAC will be done on today’s opening,
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