These 3 stocks show why spinoffs pay off, The Edge reveals hidden value of CDK and WPG
Oct 29, 2014
By Michael Brush, Senior Writer, MarketWatch / Wall Street Journal: Sometimes the best investments are ones nobody wants. Wall Street is making investors’ heads spin. The remainder of the calendar year is chocked with splashy spinoffs — from Citigroup C, eBay EBAY, and Hewlett-Packard HPQ, to name just a few. So it’s a good time to remember a basic investment insight that will serve you well in the stock market.
One way to capture the most potential upside, though, may be to avoid the highly publicized spinoffs, such as the ones noted above. They can do well. But you’re more likely to hit winners with low-profile spinoffs that attract less attention, says Jim Osman, founder of Edge Consulting Group, a independent research group and publisher of “The Spinoff Report” newsletter.
Here’s a look at three stocks, based on research by The Spinoff Report.