The Underappreciated Value Of Corporate Spin-Offs

Good Ones Can Be Great… Bad Ones Can Be Downright Awful

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Last month in Porter & Co.’s flagship publication Complete Investor, Porter reported on building-supply company Amrize, which was spun off from a much larger firm in the same industry. The business is a winner in and of itself, but the fact that it had been pulled away from a larger company has left many investors wary of it – leaving its share price floundering.

Today, Porter turns the Daily Journal over to Distressed Investing’s Marty Fridson, who shares the dynamics behind investing in spin-offs, explaining why some soar and others sour.

Marty has a long background in trading, investing, and finance… Over a 25-year span with Wall Street firms including Salomon Brothers, Morgan Stanley, and Merrill Lynch, he became known for his innovative work in credit analysis. He is the author of The Little Book Of Picking Top Stocks – and as readers of his Distressed Investing advisory know, he’s also great at finding underpriced stocks.

Here’s Marty…