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

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To: Stewart Whitman who wrote (320)6/28/1999 8:38:00 PM
From: Bob Rudd  Read Replies (1) of 1185
 
Stew: Thanks for prompt reply. Just to clarify, if, let's say in the example of RAL's upcoming spin of Eveready battery, one wanted to own RAL, the parent and not the battery bunny, the odds would tend to favor buying RAL prior to the spin [Since the spinner tends to rise] and perhaps shorting the bunny breifly on the spin if possible [Since the spinnee tends to drop].

After a month or so, a long position on the bunny might be justified once the pet food folks had sold their spun bunnies and driven the price down.

The above might not work out that way, but studies and experience would tend to support such an approach.

Am I pretty much on track here?

Thanks again, Stewart, for the reply and for taking the time to post the spin information.
bob
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