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Technology Stocks : ECMV
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To: Alan Boyd who wrote (9)3/1/2000 4:41:00 PM
From: Jaidev Sharma  Read Replies (1) of 14
 
If ECMV spins off another portion of its business, how does the current stock holder benefit?

Suppose someone bought PRFM for it's internet potential. PRFM spun off its internet business as PF (now at 50), but PRFM fell to 4- the PRFM shareholder gained nothing.

PRFM has since changed its name to ECMV and now wants to spin off other portions of its business- as a shareholder of ECMV, how would it benefit me if it goes the same way as PF (now EDV).

So the question would be- is this intention to spin off a portion of ECMV, necessarily good news to the current shareholders?

Jaidev.
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