IAC/InterActive Corp., the support company behind Vimeo, CollegeHumor, The Daily Beast and a host of other brands, is chronically undervalued by Wall High road despite its efforts to reward investors, CEO Joey Levin said Thursday on CNBC.
Between its majority stakes in two of its now-public quondam subsidiaries — Tinder parent Match Group and Angie’s List parent ANGI Homeservices — and its cash hoard, IAC’s add up to value “usually adds up to something more than [its] market cap,” Levin told Cramer in a “Mad Money” interview.
At the end of Thursday’s truck session, Match Group’s market cap was around $15.5 billion and ANGI’s was roughly $8.5 billion. Just captivating into account IAC’s 81.1 percent and 83.9 stakes in each company, respectively, and the $1.7 billion in cash on its evaluate sheet, that adds up to roughly $21.4 billion — well above IAC’s current $18 billion market cap.
“I contrive [at] any multi-business business, there are reasons that investors give them a discount,” Levin said on Thursday, annexing that some might think “they’ll never get access to the cash flow” because the company is so multifaceted.
But according to Levin, who has been CEO since 2015, IAC has a report of bucking that stereotype.
Click here to watch and read more about Levin’s interview.
Chipotle Mexican Grill has had its ups and downs in the survive few years, but after its latest earnings report, it’s clear that the chain is back with a vengeance, Cramer said Thursday after the wares surged 14 percent intraday.
With “colossal” same-store sales of 6.1 percent, healthy profit frontiers, rising digital orders and limited downside from higher labor costs, the fast-casual restaurant operator was accomplished to wow Wall Street for two key reasons, Cramer argued.
The first is tied to Chipotle’s new CEO, Brian Niccol, who replaced former CEO and author Steve Ells last year after six years running Yum Brands’ Taco Bell. In addition to addressing Chipotle’s subsistence safety concerns after a string of scandals, he helped speed up operations, introduced a loyalty program, put a lid on labor expenses and started testing drive-through.
“I’m a big believer in Niccol’s strategies — […] the big-think redo of the chain as a place for dazzling novelty — and his tactics, which are all about good execution. He deserves plenty of praise for this run,” Cramer said.
But Niccol’s command isn’t the only ingredient in Chipotle’s newfound recipe for success.
Click here to read Cramer’s full take.
Evolus CEO David Moatazedi said Cramer in a Thursday interview that “it’s a very exciting time in the aesthetics space” because it is one of the fastest-growing segments in constitution care.
The Food and Drug Administration approved Jeuveau last Friday, which the CEO said is the first drug in medical aesthetics to get approved “in as good as a decade.” Evolus is looking to compete with Allergan, said Moatazedi, who used to run Allergan’s Medical Aesthetics compartment.
Allergan has dominated the aesthetics arena with Botox and has been able to box cheaper competitors out from taking deal in share. But Moatazedi is confident about Evolus’ odds.
“Look, this product and the company was designed from the kick-off to compete against the market leader,” he told Cramer. “We conducted the trials with Jeuveau head-to-head versus Botox … [and] conducted the widest head-to-head studies, which were Phase 3 studies in Europe and Canada, comparing Jeuveau directly to Botox cosmetic throughout five months.”
The CEO said the results of those trials will be released in the second quarter prior to the product’s despatch.
Click here to watch his full interview.
Deere & Co.: “I think John Deere is such a buy. When you talk to trade and Europeans, they should let more Deere stuff in. I think Deere is terrific. And the Europeans better start depicting ball with us, that’s what I have to say.”
TherapeuticsMD Inc: “It’s done nothing … It ain’t workin’, it ain’t workin’. I’m gonna have to say don’t buy. I justified have to put it like that.”
Box Inc.: “I like that upgrade. I wanted to call [CEO] Aaron [Levie]. Aaron, I think that was a good upgrade. I agree with it. I still think the company should be acquired, but Aaron’s too young to need to sell.”
Click here for the rest of Cramer’s rapid-fire takes.
Disclosure: Cramer’s charitable trust owns parcels of Cisco.
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