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

To: marketmover who wrote (266)	8/25/1998 8:14:00 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 1185

Hi MM, Yes, I'm planning on keeping the spin-off information up. Haven't had time lately, but I want to do an update before the end of the month. Lot's of old spin-offs are beginning to look interesting now that the markets not so high. NMR - still seems a little expensive to me. EBITDA looks OK, but if you factor in interest expense, taxes (of course), and assume higher levels of capex, diluted share count, it starts to look a little expensive. Not something I would like to invest in at this time, but something I might look back at in the future. As you say, it will look interesting in a couple years. AWX - looks interesting, but it's just not my type of play (i.e. micro cap in an area which I don't know very much about). KSU - it seems fully valued to me. Last time I looked at it, even if I was money happy, I'd only want to pay $10 for the trains and $30 for Janus et al. Then again, I saw some brokerage put out a buy recommendation with a $70 target. Maybe the trains will be good after the spin-off. ROK - yes I continue to like it very much, even in this depressed environment for semi's, avionics, automation. I looks like another Lucent-type situation, with the Technology/IP being undervalued on the semi side (though, no one could possibly hide as much technology as AT&T). And then the cash flow side for "real" investors. Haven't look extensively at the others you mentioned. These are the other ideas I have been following lately: PZL/KSF - the E&P side seem(ed) undervalued earlier this month. I shorted KSF in proportion to the downstream co. and bought PZL. Not that I think the KSF/PZL downstream company is incredibly bad, it's just that, even in this poor market for oil, PZL is trading close to 2/3 the value of most other E&P companies. It also seems as though KSF is trading "with oil prices", but I can see the downstream co. benefiting from lower prices. Now, even the downstream co. looks cheap with that a 4% dividend at these levels. JEF/ITGI - the brokerage side is getting cheap. With JEF at $36 and ITGI at $29.50, the brokerage is going for ~$14.75. That's not that bad for a brokerage with $1.85 trailing EPS. I might like another couple dollars. The problem is that ITGI's float is so small it would be difficult to short. Regards, Stew