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

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To: Surfratiam who wrote (391)7/23/2000 2:49:17 PM
From: Stewart Whitman  Read Replies (1) of 1185
 
Investment return data from completed spin-offs.

Thought I'd post this return info collected over the past couple of years on completed. Hopefully there are not too many errors in the data - it was obtained through Yahoo with Nasdaq as a fallback. There are a few spin-offs that have been bought out (maybe some that have been delisted) that are not included in the summary.

The S&P return is calculated for the same period as the spin-off. It is a simple average return (not market cap weighted, etc.). The percentages are not annualized. I don't think that Yahoo adjusts for dividends, etc., but it is supposed to do spilts (or stock divis). So cash dividends are clearly not accounted carefully.

I'll post the quote data in the next message, if it fits.

Regards,
Stew

Summary:

1 Month: 93 companies Spin-Offs returned: -5.0% S&P 500 returned: 1.4%
3 Months: 87 companies Spin-Offs returned: 0.6% S&P 500 returned: 3.4%
6 Months: 77 companies Spin-Offs returned: 24.6% S&P 500 returned: 8.3%
9 Months: 67 companies Spin-Offs returned: 38.2% S&P 500 returned: 13.4%
1 Year: 62 companies Spin-Offs returned: 52.7% S&P 500 returned: 17.9%
1.5 Years: 49 companies Spin-Offs returned: 88.5% S&P 500 returned: 26.3%
2 Years: 19 companies Spin-Offs returned: -7.5% S&P 500 returned: 32.7%
Current: 94 companies Spin-Offs returned: 71.8% S&P 500 returned: 19.2%
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