Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (9614)	5/8/2006 10:54:19 PM
From: TobagoJack	Read Replies (1) \| Respond to of 25575

Hello Taikun, first the Force was in alignment Message 22429970 and a tip of the hat to your work Message 22430341 The nature of the problem is how to hedge out the market risk and distill the goodness out of these wonderful wagers. Chugs, J

To: Taikun who wrote (9614)	5/9/2006 9:24:36 AM
From: Tommaso	Read Replies (1) \| Respond to of 25575

I am simply maintaining my view that EnCana is a good investment. If you find that abrasive, there's not much I can do about it. It may be that in Canada they use the term "spin out" instead of "spin off," which has been the expression used in the United States for forty years or more. In any case, when a company subdivides itself in this way, a common pattern is to distribute shares to the current shareholders. Many of the energy trusts that are traded in Canada originated in this way. Would you mind quoting the "analysts" whom you refer to, or providing links to them? All you have to do is look at the charts of ES, COS.UN, and OST.UN to decide whether or not holders of those stocks have made money. I was recommending those almost two years before you ever established this thread, and I still hold them. I have tripled our household wealth in the last three and a half years. Please note the dates on these posts: Message 19503681 Message 19274825 Message 19547655 It is true that I deplore the frenetic, speculative, in-and-out trading of these newly-established tar sands plays.

To: Taikun who wrote (9614)	5/9/2006 9:52:41 AM
From: Tommaso	Read Replies (1) \| Respond to of 25575

Many times in the business world, companies "spin off" (see also spin out) their operations. For example, a company that makes ice cream and makes cars might split up into a company that makes cars, and a company that makes ice cream. The current owners (the shareholders) of the company would own stock in both the company that makes cars, and the company that makes ice cream. en.wikipedia.org What you are talking about is the sale of an asset, not a spin out or spin off. If management is using the term "spin out," it probably means they will distribute shares in the new entity to current shareholders. EDIT: also from Wikipedia: "The U.S. Securities and Exchange Commission view of spin out is more precise. Spin outs are when the equity owners of the parent company (aka stock holders) receive equity stakes in the new spun out company. For example, when Agilent Technologies spun out of Hewlett-Packard in 1999, the stock holders of HP received stock in Agilent."