SPIN-OFFS "secret hiding places of stock market profits" Message Board

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

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From: petal	2/5/2026 5:13:34 AM
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Geez... Western Digital's spin-off of Sandisk has been a crazy success: WD stock has gone 5x since the spin-off, while Sandisk stock has gone 20x, so that Sandisk's market cap is bigger than WD's market cap after the 5x... I guess this is to a large extent due to the ongoing "memory bubble" – but some part of it is probably attributable to the actual spin-off as well. Of course, I missed it, as I thought that WD was a shit co. and that it's better to buy spin-offs from good co.'s. Maybe I should reconsider that – maybe one should apply the same approach to spin-offs that Joel Greenblatt suggested for his Magic Formula: that is, don't try to cherry pick, just buy the whole basket.

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