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Why I like spin-offs



December 12, 2012 – Comments (2) | RELATED TICKERS: IR

According to S&P Capital IQ, U.S. companies have completed 82 major spinoffs, valued at $530 billion, since January 2002. For those valued at more than $500 million, the spinoffs have delivered a total return of 70%, compared with 22% for the S&P 500. (Their former parent companies have not fared too poorly either, returning 35%.)

Need I say more :)?

Why Spinoff Stocks Are Sizzling (And Should Stay Hot)

Happy Holidays!


2 Comments – Post Your Own

#1) On December 13, 2012 at 11:25 AM, constructive (99.99) wrote:

Any idea how this was calculated? The article doesn't seem to say.

If it's 70% annualized over 10 years that's 5.4% per year. Beating the S&P 500 but not exactly "sizzling".

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#2) On December 13, 2012 at 1:38 PM, TMFDeej (< 20) wrote:

Good question, Mega.  I don't know anything more than what the article states about this particular statistic, but I do know that spinoffs have been mathmatically proven to outperform the market.  That's good enough for me ;).


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