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Strategies & Market Trends : Value Investing

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To: Terrapin who wrote (7064)5/7/1999 5:52:00 PM
From: Allen Furlan   of 78911
 
John and board. I too am interested in phenomena of spinoffs and effect on parents. John's question was on cpu likely spinoff. I believe zd-net spinoff from zd was a tracking stock. Right after spinoff the parent stock fell. So what is advantage to holder of zd just before spinoff? A value stock that had a spinoff which brought in cash to parent was alu. Alu has retained a portion of the fragrance center spinoff but to my knowledge the owners of the parent suffered as the stock dropped after the spinoff. This is so even though alu is financially strengthened. The drop was caused because alu is no longer an internet stock. This past week however management explained the effects of the spinoff and the stock recovered somewhat. So in the case of cpu wouldnt it be prudent to wait until the spinoff is completed?
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