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Investing/Strategies / Spinoffs


Subject:  Re: observation Date:  11/22/2006  6:54 PM
Author:  DawdlingRamblr Number:  81 of 120

I can see where you can make an argument that spinoffs are becoming more mainstream and are not easy pickings. However, look at WU, H, WYN, CAR, AMP, there was ample opportunity (over the course of a couple of weeks, not quite ample but sill an an opportunity), which I didn't take advantage of by the way, to scoop up those stocks. I haven't looked at all of these or all the ones you mentioned. Looking at a parent, AXP, you could have bought around $53 or less up until August or so, months after they spunoff AMP. According to, that's the average cost at which Greenblatt himself was adding to his position. He's up about 12% since then. Don't forget that Lynch also recommended spinoffs in his book when he lists the characteristics of great stocks/companies.

Some, like HBI, IAR, etc. took off from the beginning. I think that there has been a lot of interest in spinoffs lately, particularly in the companies that have been involved. In my MBA classes, they have been talking a lot a