Spinoffs set the stage for your gains

Article Excerpt

As we often remind investors, spinoffs are one of the best ways for companies to enhance investor value. Here are two stocks set to benefit from setting up smaller operations as separate firms. IAC/INTERACTIVE CORP. $272 is a buy. The company (Nasdaq symbol IAC; Manufacturing & Industry Sector; Shares outstanding: 84.6 million; Market cap: $23.0 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) owns several online businesses, including U.S. news website The Daily Beast, web-content aggregator Dotdash, financial investing information site Investopedia, and Vimeo, a video hosting site. IAC has a long history of building up its Internet businesses and them spinning off. The company now plans to hand out its remaining stake in Match Group Inc. (Nasdaq symbol MTCH) to its own investors. That firm owns dating websites Tinder, Match, Hinge and OKCupid. It has over 9 million subscribers (with about half outside North America). As of September 30, 2019, IAC held an 80.8% economic interest (representing 97.5% of the voting power) in Match Group. In the…