Spinoff 101

Description:

Planned Spin-off Notes:

Morgan Stanley plans to spin-off Discover June 30, 2007 under the symbol DCF. Call Investor Relations of Morgan Stanley: William Pike 212-761-0008

Medtronic plans to spin-off Physio-control (3rd or 4th Q 2007). Call Investor relations of Medtronic: Martha Goldberg Aronson 763-505-2694

Help us help you stay current. If you know of any pending spin-offs, please email us at kkurtz123@msn.com


Spin-off 101

This a porfolio of spin-offs personally picked. It is not a comprehensive list. Returns on the tracked portfolio may not reflect the true potential since we haven't used any real timing or technical analysis for these listings.

Spin-offs can make great investments for several reasons:

1. They usually result in institutional selling which temporarily depresses price.
2. The independent unit has more entrepreneurial freedom.
3. Separation can create a separate value for a unit depressed by a parent's troubles.

Look for deals where management gets a big payday if the spin-off succeeds.

Don't always fear leverage dumped on the spin-off. This leverage can give it octane.

The parent can spometimes be a good buy too because 1+1 sometimes equals 3

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