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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits" -- Ignore unavailable to you. Want to Upgrade?

To: cfimx who wrote (376)	3/4/2000 7:36:00 PM
From: Paul Senior	Respond to of 1185

Thanks, Twister. I'm going to assume that "they" are right when "they" say that Moody's has a spin out value close to what DNB trades for now. And that this value will be reflected in the stock price soon after the spin off. DNB says they want to spin Moody's out by 9/30. I'm going to bet that I have time on my side. My plan is to monitor DNB and wait until the price of DNB retests lows - which I hope will happen - before I begin to establish a position. Or, my alternative would be an expectation that there won't be much movement in DNB stock for a while. (It didn't much move even on announcement that Warren Buffett or his designee had a position.) By waiting to buy DNB, if the stock doesn't move away from me, I can increase my effective annualized return when I do buy. Paul.

To: cfimx who wrote (376)	3/7/2000 2:20:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 1185

DNB. I've reevaluated my decision to hold off buying DNB, and I've decided to start just a very small exploratory position. This morning a competing firm, Duff & Phelps (DCR), received a buyout bid. I've got to go look at the numbers, but my strong guess is that the buyout gives further credence to the undervalued nature of DNB. Further, now I see the possibility of an acquirer coming in to take over DNB, keeping Moody's for itself, and spinning out the remainder. An acquisition offer for DNB may not be forthcoming, but if I can hold a little DNB now, I'll consider it as insurance as the company heads towards the Sept. spin off date. Paul.