Why I like spin-offs
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)