In truth, performance is mixed. GE HealthCare Technologies is up 39% since it began trading on January 4. But ZimVie, a dental and spinal treatment offshoot of medical-devices giant Zimmer Biomet, has lost 64% of its stock value since March 2022. “Spin-offs are not a sure bet,” says Jim Osman, founder and chief executive of The Edge Group, a firm specializing in fundamental analysis of spin-offs and other special situations. Yet, he says, because spin-offs are smaller firms that are.
News & Press
Forbes - Microsoft Stock Is Set To Skyrocket Into The AI Future
Aug 15, 2023
Over the last few decades, artificial intelligence (AI) has grown dramatically. AI has evolved from a theoretical concept to a transformational force in a variety of industries. It has advanced to unprecedented heights in its capabilities thanks to advances in processing power, data availability, and algorithm development. Machine learning, a subset of AI, has achieved substantial advances in tasks such as image identification, natural language processing, and gaming. The incorporation of AI.
Forbes - Stock Market Volatility Is Coming: 10 Tactical Portfolio Protection Strategies.
Aug 12, 2023
The VIX, or Volatility Index, quantifies investor uncertainty about the direction of the S&P 500 in the next 30 days. It is also known as the "fear index" since it rises when investors are apprehensive about the market. A low VIX score suggests that investors do not anticipate significant volatility, whereas a high VIX reading implies that investors do. A VIX rating of 10 or less is considered low, while one of 20 or more is considered high. For retail investors tracking market emotion, the VIX.
Forbes - Unlocking Hidden Value: Why Company Spinoffs Are Your Key To Maximizing Stock Market Returns
Jul 26, 2023
I was speaking at a conference once on corporate reorganizations, and after the speech, an investor came up to me and explained that he never really looked at these sorts of company events as investable situations, but that he remembered gaining shares of Chipotle Mexican Grill, Inc. (CMG) through owning McDonald's (MCD) back in 2006. He was chuffed when the price of the initial public offering doubled to $44 from $22 on the first day of trading. Incidentally, the investor I was speaking to.
Forbes - The Secrets To Winning At The Stock Market Roulette Wheel
Jul 17, 2023
When it comes to the stock market, are you an investor or a gambler? Most would want to be labeled an investor, of course. Nobody calls themselves a gambler. The latter throws up ideas of addiction and recklessness. The public stigma of gambling disorder includes ideas that those who suffer from it are “greedy” and “irresponsible,” the premise that they are at fault for their difficulties, and a desire to avoid social interaction with them. Timing the markets is touted as a skill in investing.
Barron's - Amazon Stock Has Gained 50%. Why There’s Still Time to Buy
Jun 11, 2023
Big tech stocks worked fantastically well in the first half of 2023. Can shares of Apple, Amazon. com, Nvidia, and the rest of the magnificent seven keep it up? For Wells Fargo, the answer in the case of Amazon is an unqualified yes. SOTP valuations look at the value of all the different businesses inside a company, evaluating them separately to see if there is a big difference between the value of the individual units and the overall company. Sometimes investors are more attuned to SOTP math.
Bloomberg – Kenvue Success Puts Pressure on Peers With Consumer Health Arms
May 18, 2023
A strong trading start for Kenvue Inc. — the unit of Johnson & Johnson that makes brands including Tylenol — is showing similar pharmaceutical giants the benefits of spinning off their consumer health divisions. The stock’s 23% rally in just two weeks after its $4.4 billion initial public offering on May 3 is a dramatic demonstration of investor demand for profitable businesses amid a dearth of traditional IPOs. The success could very well drive J&J peers like Sanofi and Bayer AG to separate.
Forbes - The Psychology Of Investing. How To Avoid Losing.
May 1, 2023
“The majority is always wrong; the minority is rarely right.” A lasting quote from Norwegian playwright Henrik Ibsen. A concept I buy very much into. It’s much like the Pareto Principle, also known as the 80/20 rule, which states that roughly 80% of the effects come from 20% of the causes. The principle frequently serves as a benchmark for planning, prioritization, and decision-making. Individuals and organizations can make more informed and effective decisions and concentrate their efforts in.
Bloomberg – J&J’s Kenvue IPO Shows Rivals How to Spin Off Profits: ECM Watch
Apr 26, 2023
The spinoff of Johnson & Johnson’s consumer health business is the latest example of conglomerates looking to unlock value as investors flock to smaller, more nimble companies in a market environment more focused on profits than revenues. The company, which will be known as Kenvue Inc., set the price range Monday for an initial public offering that values the business at almost $43 billion based on the top end of $20 to $23. That valuation is in line with the estimate of Guggenheim analyst.
the market NZZ - Spinoff – What does the spinoff of parts of the company bring to the shareholders?
Apr 19, 2023
From General Electric and 3M to Novartis and ABB to Alibaba and Vale: The trend is towards outsourcing of corporate divisions. The Market shows how the transactions affect the stock price and provides three examples. So it’s no wonder spin-off announcements are piling up at the moment. “This has to do with the fact that the appetite for regular public openings has collapsed in the difficult stock market environment,” says Jim Osman of The Edge, an investment advisor focused on special.