Happy New Year to all of our readers! 2018 is now officially history and it will be remembered as a year of increased volatility that ultimately left some portfolios quite damaged. That includes Mohnish Pabrai’s Spinoff Portfolio and its (backtested) historically S&P crushing results. Pabrai is a legendary fund manager and author of The Dhando Investor. In one of… Read More »
Lets close off the week with some happenings in the world of spinoffs: 1) Spinoffs Are Popular On The Johannesburg Exchange Every so often, a reader writes in to the site to let us know that our international coverage is weak (some use nicer language…others less nice). To which we reply thanks for reading and that volunteers are… Read More »
Spinoffs: Once you start, you just can’t stop. Roughly a year after breaking the famed Hewlett Packard into two pieces, Hewlett Packard Enterprise (HPE) CEO Meg Whitman is at it again. This time the structure is a bit more complex than a straight spinoff though. It’s our old friend, the Reverse Morris Trust transaction. Real veteran stuff. On… Read More »
We want to introduce a new author to the site. The Limey is a sell side equity analyst based in London and is also (more importantly) a long time reader of this site. The Limey will look at spinoff situations in Europe and elsewhere. Xerox (XRX) completed the spinoff of its business process outsourcing (BPO) division Conduent (CNDT)… Read More »
A few short hits to close off the week: The Economist had a short piece looking at some of the challenges faced by both companies following HP’s (HPQ) spinoff of its services business HP Enterprise (HPE). While both companies have scale and more focused operations, the future for each company is murky. The PC business is shrinking and… Read More »