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

To: Paul Senior who wrote (558)	3/26/2002 12:01:05 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 1185

Paul, The recent spin-off with the best long term potential looked like FTI. But now that it's off its lows, I don't think it's as compelling. RRI looked good to me. But that's as more to do with Enron then it is with the spin-off. There are a whole lot of funds/value investors sniffing around ICN. It's worth a look to see what you think might happen. If your adventurous, short CMCSK and buy T to get the telephone stub very cheaply. T stub price = <T price> - 0.34 * <CMCSK price> = 15.27 - 0.34 * 31.6. = $4.53. That's a company with a market cap of $16B with sales of $44B & EBIT of about $10B. If you think that transaction will go thru, that is. With prices getting so low, it might just be worth buying T. These other transactions look interesting to me, but they'll depend on valuation: GR/Enpro, HP/Ciramex, SWS/Westwood, MRK/Medco, AGN/AMO. Though they're not really spin-offs, I think these demutualization situations are similar - shares end up in the hands of people who don't know what to do with them. Along that line, PRU and PFG seem pretty promising. Especially with the increase in IRA & 401K contribution limits (if they are realized).