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cherlloyd9118Posted - 28 January 2016 1:48  Show Profile
5 Stocks Targeting High Value Business Models

As investors have watched the valuations of companies like Groupon, Facebook, and Open Table (NASDAQ:OPEN) surge into the multibillions. There has been more interest developing in other similar companies. Some investors believe other companies could benefit from the high levels of valuation due to their exposure to what might be similar business models. Take a look at these amazing valuations:

Groupon, which offers special deals online, is said to be considering an initial public offering that could value the company at around $25 billion. You can read more about that here. Facebook, the online social networking company, is said to be valued at about $80 billion, based on some recent transactions which you can read about <b>[url=http://www.valentinoshoesvip.com/]valentino shoes[/url] </b> here.

Open Table, the online restaurant reservations company, is already public and has a market capitalization of nearly $2.5 billion. With billions upon billions being thrown around by investors with these companies, it's easy to see why other companies are gearing up to have similar business models, with investors following for what they hope could be a great investment.

Here are five companies that are publicly traded and have by some accounts, a business model or interests in one that has similarities to these high value companies:

InterActiveCorp (NASDAQ:IACI) is trading around $31.34. InterActiveCorp operates a number of well known Internet sites and is based in New York. The 50 day moving average is $30.74 and the 200 day moving average is $27.80. IACI is estimated to earn about $1.57 per share in 2011.

Why some investors consider InterActive to be a play on Open Table: &quot;Urban Spoon&quot; is owned by IACI and is competing with the highly valued Open Table which has a market cap similar to that of IACI. Based on the valuation of OPEN alone, IACI looks downright cheap.

The market capitalization of IACI is about $2.79 billion, this is not much more than OPEN which is at about $2.5 billion. However, IACI has about $1.3 billion in cash and minimal debt, so their enterprise value is only about $1.55 billion. IACI could probably unlock a significant amount of value if <b>[url=http://www.valentinoshoesvip.com/]valentino shoes on sale[/url] </b> it were to spin off some of their businesses as separate units.

Travelzoo, Inc. (NASDAQ:TZOO) shares are trading at $77.21. This stock is at overbought levels. TZOO is a Internet company that offers travel and other deals online. The shares have traded in a range between $11.60 to $84.84 in the past 52 weeks. The 50 day moving average is $54.09 and the 200 day moving average is $36.17. Since the shares are currently trading well over the 50 and 200 day moving averages, and close to the 52 week high, they could be ready to drop lower. Earnings estimates for TZOO are $1.15 per share in 2011, so the PE ratio is about 65. Obviously, some of that run up appears to be due to investors putting a &quot;Groupon premium&quot; in these shares. I think these shares are overvalued and due for a major drop.

Quepasa (QPSA) is trading around $5.10. Quepasa operates an online social network and is based in Florida. The 50 day moving average is $7.61 and the 200 day moving average is $7.05. These shares have traded in a range between $3.25 to $15.45 in the last 52 weeks. Earnings estimates for QPSA are for a loss of 31 cents per share in 2011, and a profit of 22 cents for 2012. As the name implies the Quepasa social network primarily appeals to the Latin American community. (NASDAQ:AMZN) shares are trading at $176.97. Amazon is a Internet retailing giant and is based in Washington. The shares have traded in a range between $105.80 to $191.60 in the past 52 weeks. The 50 day moving average is $176.30 and the 200 day moving average is $160.68. Earnings estimates for AMZN are $3.19 per share in 2011, and $4.43 for 2012.

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