Judging by our tables and readership, spinoffs have become pretty popular and apparently, even Jim Cramer is a fan. Speaking on his show last week, Cramer exclaimed that he is ‘a huge backer of this break-up strategy, in part because the stock market prefers smaller, easy-to-understand, pure-play type companies over big, complicated conglomerates.’ Continuing with the spinoff theme, Cramer… Read More »
Hey, we know what you’re thinking. You wish there was a way to invest in a pure-play ringtone and phone wallpaper company. Well, thanks to IDT(IDT), you will not have to wish much longer. IDT has filed a form 10 as the first step in spinning off its majority stake in Zedge. Zedge, in case you missed it… Read More »
Nearly a decade ago, we wrote about Armstrong World Industries(AWI) as it emerged from a long bankruptcy that resulted from asbestos liabilities. At the time, we thought the stock looked expensive. Ten years later, the stock price is basically in the same place, and Armstrong is spinning off its flooring business, completing a dismantling begun with the 2012… Read More »
Nuvectra(NVTR) had an awful first week following its spinoff from Greatbatch(GB), as we pointed out last Friday. At Friday’s close, it was trading well below its cash position, and it carries no debt. Investors who sought to exploit this spread have been rewarded today with a steadily rising stock that has risen over 30%. The stock trades below… Read More »
CBS Corporation (CBS) is ready to shed one of its oldest assets. While the network is well known today for its hit shows, its origins are in the radio business. Nothing lasts forever though and during this week’s presentation at its analyst day, CEO Les Moonves announced that the company was considering ‘its strategic options’ for the radio business.… Read More »
We’re not sure we’ve ever seen a new spinoff drop so much, so fast. Earlier this week, Greatbatch(GB) completed the spinoff of Nuvectra(NVTR). Nuvectra has an approved product and $75 million in cash, but is still an early stage company. After initially climbing above $11 on Monday morning, Nuvectra has gone straight down. Today alone, the stock is… Read More »
Masayoshi Son’s Softbank (SFTBY) is shaking up its organizational structure, creating two separate, but still wholly owned, internal companies. One business will house its domestic (Japanese) businesses such as mobile and its stake in Yahoo Japan, while the other unit will contain its overseas investments. The overseas bucket will include Softbank’s investments in budding technology companies, such as… Read More »
Yesterday, Greatbatch(GB) completed its previously announced spinoff of Nuvectra(NVTR), as expected. “Today’s successful spin-off of Nuvectra marks another point in our strategy to design, develop and manufacture discrete technologies and complete active implantable medical device systems in partnership with customers,” said Greatbatch President and CEO, Thomas J. Hook. “Nuvectra is a valuable partner and customer utilizing an extensive… Read More »
Sadly, not every announced spinoff actually ends up executed. For example, earlier this week we highlighted Fidelity National Venture’s (FNFV) postponement of its restaurant group spinoff while it exercises patience and awaits better ‘market conditions’. Another recently scrapped spinoff was Federal-Mogul Holding’s (FDML) planned separation of its Motorparts business from its Powertrain unit. The decision shouldn’t have come… Read More »
After successfully spinning off J. Alexanders (JAX) late last year, Fidelity National Ventures (FNFV) was set to spin off the rest of its restaurant assets under the holding company American Blue Ribbon Holding. Then plans changed. The headline was that the spin was delayed due to ‘market conditions’, a catchall phrase that is especially useful during market volatility, but… Read More »
A quick update now that the transaction is official. The Manitowoc Company (MTW) completed the tax-free spinoff of Manitowoc Foodservice (MFS) on Friday, with shareholders receiving one share of MFS for every share of MTW owned. Expectations were for the legacy crane business, which kept the company name, to languish amidst a severe downcycle and for the foodservice… Read More »
Greatbatch(GB) shareholders should be prepared for their portfolios to look a bit different this year. Later this year, the medical device manufacturer will be changing its name to Integer Holdings Corporation. First, the company will spin off QiG Group, which will be renamed Nuvectra. On March 14, shareholders as of March 7 will receive one Nuvectra share for… Read More »