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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (70233)5/2/2022 2:38:16 PM
From: Spekulatius1 Recommendation

Recommended By
petal

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regarding Spinoffs- Me neither, especially considering the investment in time. traditionally, spinoffs have been good as group, as was popularized by Greenblatt, but I think Mr Market and management has caught up with the times. I think in particular management uses spinoffs as dumping ground to get rid of business that they can't fix in addition to a chunk of debt. the combination of debt and lousy business often tends to be toxic.

That said, there are occasional gems coming around like JXN (which I sold, but made money on quickly). It's worth checking out spinoffs, but 80% are probably fools gold.
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