Further Reading On Nacco’s Hyster-Yale Spin

Normally, there is plenty of time to dig into spinoff opportunities. It often feels like the process goes on forever. There are a few occasions though where that luxury does not exist, such as when a company moves quickly or, more likely, when you simply just found out about the situation at a later date. That seems to be the case with Nacco Industries (NC). A few alert readers recently pointed out to us that Nacco was planning on distributing its material handling group, Hyster-Yale, via stock dividend on September 28th. We wrote a little bit about the situation here.

For some additional reading on the subject (if you are short on time), check out Value Uncovered’s writeup of the company from last December. It could use a little updating from the past year, but it presents a solid valuation framework for the company. Always nice to have a foundation to work with. Additionally, Nacco’s spinoff was highlighted in Barron’s this past weekend (scroll down). It didn’t go into too much depth, but the author suggests that Nacco is worth between $140-165 per share on a sum of the parts valuation, a figure which represents a nice premium to the current share price.

Disclosure: Author currently holds no position in any stock mentioned.