Author Archives: Inelegant Investor
Appearing on Fast Money this evening, Doug Kass predicted that another hedge fund manager would join Bill Ackman of Pershing Square Capital by taking a big stake in Procter & Gamble(PG), and that together they would force the company to split into two or three pieces. Kass said the stock price would increase $7-$10on such an announcement. With… Read More »
AbbVie(ABBV) is one of the most massive spinoffs we’ve seen, so every piece of news or analysis is of interest to us. Hence it was with great interest that we noted that Seeking Alpha published “AbbVie’s Shares Are More Appealing Than Abbott’s Following The Spin-Off” this morning. We were pleased to see author Robert Broens put a stake… Read More »
Not wasting any time, AbbVie(ABBV) declared a $.40 quarterly dividend on Friday, two days after its spin off from Abbott Laboratories(ABT). At Friday’s closing price of $34.39, the stock yields 4.65%. The dividend will be paid on February 15, 2013 to shareholders as of the close of business on January 15, 2013. For former Abbott shareholders continuing to… Read More »
There’s a certain fun in writing about spinoffs of microscopic companies, stocks that aspire to be penny stocks after they increase 10,000%. It’s definitely more fun than being a shareholder in such a company, a fate we would warn all away from. One such company popped up in our radar in October, but we didn’t write about it… Read More »
On Wednesday, Abbott Laboratories(ABT) completed its spinoff of AbbVie(ABBV), and the two firms began their new, independent lives. As is often the case, as their first acts, each company issued a press release noting the occasion. Abbott’s release was relatively brief, wished AbbVie well, and gave a short picture of the new Abbott, focusing on the company’s many… Read More »
After long preparations, Humira manufacturer AbbVie(ABBV) has been spun off from former parent Abbott Laboratories(ABT). Abbott shareholders will wake up to find one share of AbbVie in their account for every share of Abbott that they own. We have covered the story, but not performed any deep analysis of either company. So let’s hear from you, readers. What… Read More »
It’s a few weeks old now, but with AbbVie’s(ABBV) spin from Abbott Laboratories(ABT) complete, we thought it worthwhile to mention this piece from Morningstar on AbbVie’s prospects. No doubt, the new company has many things going for it. A strong balance sheet is one: Following the split from Abbott, AbbVie will carry approximately $16 billion in debt and… Read More »
Faced with one marketed generic drug and insufficient capital to further development of its late stage cancer drug, Australian biotech Alchemia(AEMAF) concocted a strategy for funding. Alchemia split its cancer division into a new company, Audeo Oncology, which it planned to IPO in the United States, raising $50 million. The remaining shares were to be spun off to… Read More »
Some spinoffs are tiny, others are born big. AbbVie(ABBV) is a case of the latter. With a market cap of over $50 Billion, it begins life as a megacap when it spins off on January 2 from Abbott Laboratories(ABT) and thus replaces the sinking Dell(DELL) in the megacap S&P 100 Index. This was one of several index changes… Read More »
What does it take to get into Harvard? Around $4, plus commission. Massachusetts-based Harvard Bioscience(HBIO) has long been a leading manufacturer of apparatus and scientific equipment, but, with a market capitalization of just $115 million, it has flown under the radar of many investors. Founded in the basement of Harvard Medical School in 1901 by Dr. William T.… Read More »
Immofinanz(IMMZF) is a large, Vienna-based real estate company you probably haven’t heard of, though it operates on a massive scale. CEO Eduard Zehetner reiterated in a recent interview that the company plans to spin off Buwog, its residential real estate unit, by 2014. Zehetner said the company plans to acquire more German apartments and proceed with a separation… Read More »
Telecom Itailia’s(TI) turbulent flirtation with the spin off of its fixed line assets took another shaky step forward as the company has engaged Morgan Stanley to advise on the process. Telecom Italia would be the first privatized European telecom to take such a step. Most likely the company would take outside investment in the fixed line assets and… Read More »
On Friday, Abbott(ABT) announced the effectiveness of the registration statement for its AbbVie(ABBV) spin. As we discussed previously, Abbott shareholders will get one AbbVie share for each Abbott share that they own. The new shares are to be distributed on January 1. Shares in the new company began trading on a when issued basis today, as did Abbott… Read More »
Discussions of a possible spinoff by Telecom Italia(TI) have been a rocky road with nary a marshmallow in sight. A month ago, Reuters reported the spinoff was ‘stalled’. Egyptian Billionaire Naguib Sawiris, who has proposed injecting $3.9 Billion into the company is opposed to the plan. Sawiris told Reuters he was also opposed to a current plan to… Read More »
Nelson Peltz is a name that comes up not infrequently in the world of spinoffs. We reported in August, that, after protracted discussions, he had gained a board seat at Ingersoll Rand (IR) and was pushing for the company to split into three publicly traded firms. Today, Ingersoll Rand announced that it will be combining its residential and… Read More »