Defense contractor Northrop Grumman (NOC) is feeling pretty good right now after having just won a massive contract for the new long range bomber. The company is also in the process of restructuring its organization by cutting its operating groups from 4 to 3, one of which will be called Technology Services. The move led to suspicion that… Read More »
Exelis (XLS) is currently in the process of spinning off its government services business, Vectrus. The spin is expected to be completed sometime this summer and Barron’s ran a piece a few weeks ago suggesting that the parent company has a lot of upside at its current levels: The remaining company will be a pure-play defense electronics business, aligned… Read More »
Earlier this year, we mentioned analyst rumblings that Jonhson Controls(JCI) ought to spin off its automotive seating business. Now, the company has decided to undertake a major move, but not the one suggested. Johnson will be spinning off its auto interiors business into a joint venture with a subsidiary of Chinese auto maker SAIC. Johnson will own 30%… Read More »
When it comes to spinoffs, investors often focus on the management teams. One area of interest is compensation. Is management incentivized with long term options or stock to deliver strong performance? Another key issue is location. Who ends up where? There is a belief that top execs know the business best and want to be where the real… Read More »
If a certain investing strategy delivers returns then you can count on followers and imitators joining the party. Just google ‘how to invest like buffett’. Even this site is an offshoot of Joel Greenblatt’s successful investment strategy. Corporate strategy is the same, especially in the minds of analysts in the investing world – if an idea worked for one company then every company in the… Read More »