Author Archives: Inelegant Investor
On the heels of last year’s spinoff of Howard Hughes Corp(HHC) which we wrote about here and here, General Growth Properties(GGP) approved plans today to spin off Rouse Properties on January 12, 2012 to shareholders as of December 30, 2011. The spinoff, which will be treated as a taxable dividend, is expected to trade as a REIT under… Read More »
In a transaction we previously discussed here, Expedia(EXPE) will complete the spinoff of TripAdvisor(TRIP) on or around December 20. Immediately prior to the spin, Expedia will execute a 1 for 2 reverse split, and on December 20, TripAdvisor will be added to the S&P 500, replacing Tellabs(TLAB). Expedia, itself spun off several years ago by Barry Diller’s IAC(IAC),… Read More »
Whopper Investments asks the question we’ve been puzzling over: What is the purpose of the preferred stock being issued to Sears(SHLD) shareholders as part of the Orchard Supply(OSH) spinoff? We’ve previously written in general terms about the spinoff here, but haven’t much discussed the prospects of the securities that will be distributed. Sears has its own issues which… Read More »
Alexander & Baldwin(ALEX) announced plans this morningto spin off Matson, its ocean transportation and domestic logistics company. Alexander & Baldwin, which has owned Matson since 1969, is the 4th largest private landowner in Hawaii, where it owns 88,000 acres. A & B is the largest farmer in the state, a developer of condos and other projects, and owns… Read More »
Marriott Vacations Worldwide(VAC) which we discussed previously, has now completed its spinoff. Timeshares are a challenging industry; they sell a product that many buyers seem unhappy with. Goldman Sachs started the company with a Neutral rating, and in the current economic environment is likely to be challenging for the new company. The former parent, Marriott International(MAR), has… Read More »
Abbott Laboratories(ABT) is joining the parade and splitting itself into two. Like many other recent spinners, Abbott is a spinoff veteran, having spun off Hospira(HSP) in 2004. Though at times, even recently, Hospira has traded much higher, on the whole, returns for the two pieces 7 years later have been unimpressive. Hospira is now barely up 10%, and… Read More »
ITT’s(ITT) long awaited spinoffs, Xylem(XYL) and Exelis (XLS) are set to be distributed to shareholders on 10/31. Standard & Poor has announced that Xylem will take ITT’s place in the S&P 500 index. Both Exelis and ITT will join the S&P MidCap 400, replacing Eastman Kodak(EK) and Kindred Healthcare(KND). Lumos Holdings, being spun out of NTELOS(NTLS) on the… Read More »
Ending a short-lived marriage, Ralcorp(RAH) announced plans today to spin off its Post Cereals business as an independent company. The company hopes to complete the spinoff in the next 4 to 6 months. Ralcorp. which itself was spun out of Ralston Purina in 1994, purchased the Post Brands from Kraft(KFT) in August 2008. Ralcorp, which will continue to… Read More »
ConocoPhillips(COP), one of the world’s six “supermajor” oil companies has decided that the benefits to vertical integration are not all they’re cracked up to be. The company announced today that it will be spinning off its refining business in the first half of 2012, leaving it as a pure-play exploration and production business. At the time of the… Read More »
Sears Holdings(SHLD) announced today that it plans to spin off Orchard Supply Hardware. Orchard operates 89 full service hardware stores in California, averaging 40,600 square feet. No date or distribution ratio have been set, but the company does state in its S-1 that it hopes to trade under the OSHS symbol. After the spinoff, ESL investments and affiliates,… Read More »
Image via Wikipedia Just weeks after its debut, Motorola Mobility(MMI) warned that sales were slowing in the face of Verizon’s iPhone introduction. Despite reporting a profit and beating analyst estimates by $.01, the stock traded down sharply as the company projected a loss for the current quarter. Analysts had, on average expected earnings of $.01 for the current… Read More »
While some companies are new to spinning off divisions, others are known for their serial spinoffs. Few however, can match the fecundity of ITT(ITT)(nee International Telephone & Telegraph). ITT was born out of the Puerto Rico Telephone Company in 1920. Over the next half century, ITT was the classic conglomerate, buying such diverse companies as The Hartford Insurance,… Read More »
Tyco International(TYC) has canceled plans, announced in April, to spin off its Electrical & Metal Products unit to shareholders. Instead, Tyco announced on November 9 that it would be selling 51% of the unit, bow called Atkore, to private equity firm Clayton, Dubilier, & Rice for $720 million in cash. Tyco plans to use the cash to repurchase… Read More »
Image via Wikipedia In October, when Bill Ackman and Pershing Square Capital disclosed an 11% stake in Fortune Brands(FO), there was speculation that he would push the conglomerate to break up. Today, Fortune announced plans to break into three companies. Fortune itself would retain its Premium Spirits business, led by venerable brands such as Jim Beam, Maker’s Mark,… Read More »
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).… Read More »