We’re not sure we’ve ever seen a new spinoff drop so much, so fast. Earlier this week, Greatbatch(GB) completed the spinoff of Nuvectra(NVTR). Nuvectra has an approved product and $75 million in cash, but is still an early stage company. After initially climbing above $11 on Monday morning, Nuvectra has gone straight down. Today alone, the stock is down over 25%, close to the day’s low of $4.25.
As near as we can tell, the stock now trades below cash, has no debt, and no new news has been released. Is this all the result of dumping by investors who woke up to find an unwanted stock in their portfolio. If so, this could be a good opportunity for those willing to take the risk. Anyone know why this is down so much?
Disclosure: The author holds no position in any stock mentioned
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