Month: August 2011

Free As An Eagle

The old rumor mill got another one right. AMR Corporation (AMR), American Airline’s (‘AA’) parent company, recently announced its intention to move ahead with a spinoff of American Eagle, its short-haul regional carrier. Eagle, the US’s third largest regional airline (at least based on aircraft operated – it’s fourth in fare-paying passengers), generates revenues from operating flights and… Read More »

Spins That Need To See the Doctor

Amidst the current carnage, it feels a bit disingenuous singling out one or two individual stocks for poor performance, but some spin-offs have taken quite a beating recently. Just prior to the increase in market ‘volatility’, nursing home operator and health care REIT stocks nose-dived because the CMS announced a harsher than expected (11.1%) cut in Medicare reimbursement… Read More »

Time To Break Up?

Activist investors appear to be back and are once again using their clout to influence corporate decision making. Occasionally, this can lead to a spinoff such as the case with Bill Ackman’s Pershing Square and Fortune Brands (FO) or Carl Icahn and Motorola. Of course, not every company is looking for outside ‘advice’. Consider the recent news regarding… Read More »