Jim Royal, one of The Motley Fool’s “Rising Stars”, sure has taken a liking to spinoffs. He recently penned a brief note pegging recent spinoff Sabra Healthcare REIT(SBRA), and future spinoffs Rainbow Media and Northrup Grumman’s(NOC) shipbuilding unit as “Spinoff Stocks Worth Watching“.
In a followup piece, Royal recommends buying Sabra, which recently spun out from Sun Healthcare(SUNH). He finds it attractive thanks to its yield and its projected ability to deploy its cash horde.
Disclosure: The author owns no stock mentioned
