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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits"

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To: ron coleman who wrote ()12/16/1999 6:56:00 PM
From: LauA   of 1185
 
Has anyone read through the form 10 for HBP (Huttig-spinout from CR)? I don't see any special vigorish for management. In fact it looks like the Rugby deal allows them to cash out, in which case the stock price could suffer for a long time. On the other hand doing a 4.5:1 split may create a lot of oddlot shares, tax selling season, and structural institutional reasons could promote an early crater, which could be a good buying opportunity. The underlying business will be $1 billion/year of household names (no pun intended) with $100 mil of debt. Profit margins look OK to me for that kind of stuff, but I haven't really digested it yet.

Lau
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