How to Cash In on the Match.com IPO

Shah Gilani

Every so often, in sharing a story about a "Disruptor" catalyst making waves around us, I'll recommend a story-related stock.

One recent example was IAC/InterActiveCorp (Nasdaq: IACI), which I recommended in my June 12 report, "Today We're Going to 'Fix You Up' With a Winner."

It's only been two weeks, but IAC is already following my storyline.

Of course I was trying to be funny with the "Fix You Up" reference in the title, as the story was about online dating in general. But I was quite serious in predicting that Barry Diller's IAC/InterActiveCorp would spin off its Match Group of properties into a separate company and issue shares to existing IAC stockholders.

Well, it didn't take long. Sure enough, last week IAC said it was going to do just that, and spin off the Match Group into a separate company. In a statement, IAC said that it expects Match Group to issue close to 20% of its shares in the IPO.

In my report, I accompanied my recommendation with a specific "Buy" strategy.

I still like the company, but today's markets are fluid – meaning the strategy I detailed needs refining.

Today, I'm going to do just that. And you don't want to ignore it…

After all, online dating is a $2 billion business…

A "Golden" Game Plan

At the time I penned my report – on account of the market wobbling a bit – I recommended buying IAC, but trying to get it lower if the market dipped and took IAC down with it. In a perfect world, the market would have dipped and IAC would have gone down to the $70 level, where I said to buy it, and then gone lower to $65, where I said you should buy more.

But it's not a perfect world – which is actually a good thing since it means the overall market didn't tank (at least for now). So we didn't get to load up on IAC at a level much lower than where it was trading when I made the recommendation.

Even so, I'm betting at least some of you folks bought some shares that day – especially since I concluded by saying: "The only thing is, if you wait to pick up shares a lot lower, you may not get a chance. The market could climb the current 'Wall of Worry' and go a lot higher before it eventually 'corrects.' Barring a Match Group spin-off, smartly buying IAC shares and adding to your position on dips could be a great way for you to fall in love with online dating. And if that happens, just remember: We were the matchmaker that 'fixed you up' with this big-profit Disruptor."

If you listened – and acted – you're at least a little in love this week.

If you waited until the end of the day (June 12) and bought IAC, you'd own the shares at roughly $75.93. It made a new high of $82.40 last week and closed at $80.48.

So here's what you should do now…

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Shah Gilani

About the Author

Browse Shah's articles | View Shah's research services

Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.

He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.

Shah founded a second hedge fund in 1999, which he ran until 2003.

Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.

Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.

Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.

Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."

He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.

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