Spin-Off Research In the News

Corporate spin-offs are booming

Posted by Paul McCann on Tue, Nov 01, 2011 @ 13:11 PM

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Corporate spin-offs are booming, reports financial analyst Joseph W. Cornell, CFA. This year so far, nearly 40 spin-offs have been announced, including, announcements by Kraft Foods, Marathon Oil, Motorola, Sara Lee and Tyco International. These moves are meant to create more focused companies that can grow faster, benefiting stock prices. Spun-off companies also often are acquired by other companies, further pushing up stock prices. Cornell's favorite recent spin-offs: Fortune Brands Home & Security (FNHS) and Golar LNG Partners LP (GMLP).

Joseph W. Cornell, CFA, is the principal of Spin-Off Advisors, LLC, a Chicago-based independent equity research firm, and author of Spin-Off to Pay-Off (McGraw-Hill).

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