The straightforward strategy of buying companies that have recently been spun off from their parent has generated very
good results. The forces of divestiture and conglomeratization eternally wrestling with each other like gravity and energy in the cosmos.
How about this for a rational explanation:
Spin-offs generally result in more “pure play” stocks which then become more accurately valued in the marketplace. When the pre-spun-off business are tied Continue reading “Spin-offs and value creation”