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 »
Cover via Amazon A corporate conglomerate is truly a wonderful thing. Growth through acquisitions often leaves these companies quite bloated and operating in unexpected areas though. Sometimes this is done on purpose in order to diversify exposure by investing in unrelated areas. These ancillary businesses surrounding the ‘core’ can be quite surprising and make you go ‘Really?’ –… Read More »
Image via Wikipedia Cablevision Systems Corporation(CVC) which spun off Madison Square Garden(MSG) earlier this year is back at it, announcing that it plans to spin off its Rainbow Media Holdings business in mid-2011. Rainbow Holdings owns such popular cable channels as AMC, WE, IFC, and Sundance. Investors appeared enthused about the move, with the stock moving up 6.84%… Read More »
Just came across a bullish write up on Furiex Pharmaceuticals(FURX), which was recently spun off from PPDI, and has since dropped significantly in share price. Above Average Odds points out the indiscriminate selling, strong management, large cash hoard, and pipeline in making a case for “a wonderful asymmetric risk reward opportunity.” Definitely worth reading and considering. Disclosure: Author… Read More »
Image via Wikipedia Despite the optimism of spinoff investors, not every spin is a success story…at least when measured by stock price appreciation. In late August of 2009, offshore rig contractor Pride International (PDE) spun off its shallow water operations into the newly formed Seahawk Drilling (HAWK). The great ticker could not overcome the poor industry fundamentals and… Read More »
The GGP drama is finally nearing its end and time is running out to jump aboard the Howard Hughes Corporation prior to its spinoff from General Growth Properties (GGP). With GGP’s emergence from bankruptcy around the corner, the company announced November 1st as the date for distribution of shares of the two separate publicly traded corporations. According to… Read More »
Image via CrunchBase Ever since eBay (EBAY) unloaded its stake in Skype last year, there has been fierce speculation that they would do the same with PayPal, the popular online transaction company. Here is a piece in the New York Times from earlier this year making the case that a spinoff is needed in order for PayPal to… Read More »
Image via Wikipedia Amidst the turmoil of 2009, my alma mater hosted a small gathering for its alumni working on Wall Street. Typically, these events involve a fair amount of drinking, active networking, soliciting of donations and the inevitable token ‘brief’ remarks from someone in the industry. That evening’s guest of honor was none other than Bill Ackman,… Read More »
As Ted pointed out in the last comment thread, Parametric Sound Corporation finally announced a ticker last week. The stock will trade on the OTCBB as PAMT. So far the stock has fallen from a high of $.50 to $.30 on low volume, but not much here until the company can start showing some revenues.Meanwhile, former parent LRAD… Read More »
Parametric Sound, which was spun off by LRAD earlier this week, still has no ticker on any market as far as we can tell. LRAD, on the other hand, is up over 50% today on news that it had received a huge order from a foreign government. THe order will deliver $12.1 million in revenue in the first… Read More »
Image via Wikipedia In my last post I took a look at the ‘rumor mill’, but sometimes you just don’t seem them coming (even if they make sense). In mid-June this year, Sunoco Inc (SUN) announced its plans to spin-off SunCoke Energy in the first half of 2011. Sunoco is principally a petroleum refiner and marketer and chemicals… Read More »
Ealier, we wrote on the upcoming LRAD spinoff of Parametric Sound in LRAD to Spin Off Parametric Sound, The Company Nobody Wanted. Things have proceeded and the company will be distributing 1 share in Parametric Sound on September 27 for every 2 shares of LRAD owned on September 10. The new company will trade on the OTCBB and… Read More »
It’s the dog days of August and sports fans are in a frenzy. Has Tiger rebounded? Not this year. Exciting pennant races? Nope. What really has fans hopping and going wild is the start of NFL training camps. Really? Meaningless training camps? Yup and that fact is symbolic of the NFL’s power and outright dominance over the US… Read More »
Image via Wikipedia LRAD Corporation (LRAD) recently announced its intention to spinoff most of its HSS Technology (HyperSonic Sound) related business into a new company called the Parametric Sound Corporation. The transaction is expected to be completed within the next three to four months. Post-spinoff, LRAD will continue making its Long Range Acoustic Device (for which the company… Read More »
Image via Wikipedia A little while ago, we highlighted some interesting academic research looking at the returns of spinoff stocks. Recently, another study looking at the space was published, albeit from a slightly different angle, by Harvard Business School doctoral graduate Emilie Rose Feldman and professors Stuart C. Gilson and Belén Villalonga. The authors attempt to answer one of the… Read More »