SpinCo – Spin-Off Companies

Hello and welcome back to Thrifty Investing!

As an investor, do you have any niches you like to participate in, such as Stock Splits, Mergers, Acquisitions, or SpinCo’s?

I am a big fan of getting something for having something. Getting a piece of the new company, just for holding shares of the original company. It’s a reward for buying and holding.

Given some evidence, especially in “You Can Be A Stock Market Genius”, Spin-Offs, can be very profitable. Especially once the spin-off completes. The typical purpose of the spin-off is to bring forward a piece of the company that shines, but has been buried under debt from the original company, or it has been overlooked because of the many different companies that might be under the umbrella of the original.

Once these companies spin-off, it allows that company to shine. The new company may not be burdened by large amounts of debt any more and becomes attractive to investors.

When you’re holding the original company, typically you’ll get shares of the new company once the spin-off is completed.

The next upcoming SpinCo I have that will be performing the spin-off, is WDC, Western Digital. They are spinning off and splitting their two different memory styles into two different companies. I definitely want a piece of the new company that will be focusing on Flash Memory and SSD.

The next one I’ll be verifying is UL. They are spinning off Ben & Jerry’s ice cream to be it’s own public company. Who doesn’t love B&J?

What spin-off are you excited for? I am curious on what will happen with the SpinCo for Comcast. Let us know below which spin-off’s you’re looking into!