…I say that’s like the blind leading the blind. Have you looked at IAC/InterActive Corp.(IACI) lately? It’s not exactly tearing up the dance floor out there; and what’s with the name? Can’t they settle on either IAC Corp. or InterActive Corp.? If Barry can’t even come up with a decent name, how is he going to save Yahoo? He has his hands full right now - what with the new digs - and making sense of all his businesses, he doesn’t need any more distractions. Sure, he might score a touchdown with such a bold move but he also could destroy a bunch of shareholder value in his own company. It’s a bad move for both in my opinion.

Since we’re on the subject of companies with wildly diverse holdings, Nacco Industries (NC) is a stock to put on the old watch list:

• Nacco doesn’t quite own the number of brands that IACI does but they do own three diametrically opposed businesses. One manufactures lift trucks including forklifts under the brands Hyster and Yale. Worldwide they control a 12 percent market share and in the America’s, that number is more like 26 percent. They are a player in factories and shipyards across the country.

• The next business in the Nacco empire is the Housewares Group, which includes the small appliance brands Hamilton Beach and Proctor Silex as well as the kitchenware retailer, Kitchen Collection. They have 280 stores across the United States selling their own brands as well as other popular kitchen equipment.

• Lastly, the North American Coal Corp. operates six surface lignite coalmines across the country.
  

Granted, the conglomeration of businesses Barry Diller has put together makes a heck of a lot more sense then the three divisions above; the end-result is pretty much a draw in terms of bottom line margins. The difference between the two companies is in the valuation. Nacco trades at a price to sales ratio of 0.40 while IAC/InterActive’s is 1.8; return on equity for Nacco is 12.5 percent, IAC/InterActive’s is 2 percent; and lastly, the enterprise value (market cap plus debt less cash) for Nacco is 7 times EBITDA (earnings before interest, taxes, depreciation and amortization) while IAC/InterActive’s is 10.

Internet businesses clearly receive better valuations than old industry holding companies but given Nacco’s discount plus their $1.92 dividend, I’d go with the old school.