Stock Spinoffs

Summer Of Spins Shakes Up S&P Indexes

The unprecedented number of spins this week has kept the folks at S&P working overtime making changes to their indexes.

Last week, AOL(AOL), a spinoff of Time Warner(TWX) was acquired by Verizon(VZ), a conglomeration of several spinoffs of the original AT&T(T). As a result, Casey’s General Stores(CASY) will move from the S&P SmallCap 600 to take its spot in the S&P MidCap 400. Nektar Therapeutics (NKTR) will join the S&P SmallCap 600.

At the close of business on June 30, TopBuild(BLD) replaced Aeropostale(ARO) in the S&P SmallCap 600 following its spin off from Masco(MAS). Masco will remain in the S&P 500.  Cable ONE(CABO) joined its former parent Graham Holdings(GHC) in the S&P MidCap 400 following its spin, replacing Peabody Energy(BTU). Chemours(CC) replaced Semtech(SMTC) in the S&P MidCap 400. Semtech moved to the S&P SmallCap 600, replacing Paragon Offshore(PGN) which was spun off from Noble Energy (NE) last summer. Chemours’ former parent DuPont (DD) will remain in both the S&P 100 and S&P 500 indexes. The new Energizer (ENR), having been spun out of the newly renamed Edgewell Personal Care(EPC) joined its former parent in the S&P MidCap 400, pushing Harsco(HSC) to the S&P SmallCap 600, replacing swiss-franc battered FXCM(FXCM).

At the close of business on July 1, Columbia Pipeline Group(CPGX) will enter the S&P 500, replacing Allegheny Technologies(ATI). Allegheny will move to the S&P MidCap 400, replacing Unit Corp(UNT). Unit Corp will move to the S&P SmallCap 600, replacing PetroQuest Energy(PQ). Columbia will be spun off from NiSource(NI) which will remain in the S&P 500.

Disclosure: The author owns shares in MAS,BLD,GHC and CABO

 

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