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 »
Sun Healthcare Group Inc. (SUNH) recently announced their intention to split the company into two – a real estate operating company (Sabra Health Care REIT) and a nursing care/healthcare services company (Sun Healthcare Group). The transaction is expected to be completed in the fourth quarter of this year and the company plans to raise additional capital through an… Read More »
Vishay Precision Group (VPG), a proposed spin-off of Vishay Intertechnology. Upon completion of the spin-off, VPG will trade on the NYSE under ticker symbol VPG. VPG is in the business of designing, manufacturing and marketing Foil Technology Products (strain gages, ultra-precision foil resistors, and current sensors) and Weighing Modules and Control Systems (transducers/load cells, instruments, weigh modules, and… Read More »
Image via Wikipedia One potential hurdle for Questar’s (STR) proposed spinoff was cleared earlier this week as the company’s Board of Directors approved the transaction. The new company, QEP Resources, Inc is expected to trade on the NYSE under the symbol “QEP” and will be comprised of the natural gas and oil exploration and production (E&P) and midstream field services businesses.… Read More »
Image via Wikipedia First American Financial Corporation is scheduled to be spun-off from First American Corporation later on this year (from the proxy filed 4/26/10 the targeted date is June 1st 2010). Spin-offs are some of my favorite investments because some of them offer distinct advantages over other investments: 1. When they begin trading, they are more prone… Read More »
Image via Wikipedia By the time United Technologies(UTX) offered to purchase Babcock & Wilcox for $42 per share in March 1977, the company’s storied history already extended over a century. Founded to manufacture and sell the water tube boiler invented by Stephen Wilcox, the company’s products powered the first New York City Subway, Teddy Roosevelt’s Great White Fleet and the… Read More »
CXO Advisory recently reviewed the literature regarding spinoffs, and brings several relevant studies which detail positive returns for spinoffs. The abstracts presented describe some interesting results, we hope to take some time to review the papers themselves in the near future.