No no no. The Borders website exists already, and it is under the control of Borders, so there is no new competitor created. And you don't spin it off, you sell 20% of the stock.
Mattel ran big today because it is about to do exactly that. I think Mattel is still a buy, even 50% above the bottom. Visit Mattel's website, and I think you will find as I did one of the most intelligently structured web strategies a "stodgy" company has produced. And it is profitable. (don't get me wrong - the internet is not the reason Mattel is a buy, but its certainly a plus) On the conference call today, the reason Mattel is planning a partial-IPO emerged. Obviously they think it will goose the stock, but there is another reason. They want to acquire online assets. You don't do that with Mattel stock. But if the Mattel.com stock were to go to insane levels, it becomes an acquisition currency. That's what they're thinking.
I read something about AMR last week - I can't recall where, that said if you're a company with a subsidiary that has an internet business that may trade for more than the parent company is worth, YOU SELL IT NOW. (AMR-Sabre-Travelocity)
JJC |
