To Find Small Caps, Don't Neglect the Large: Spin-offs for Fun and Profit
by John Deysher
Many diversified companies are electing to spin off parts of their businesses as a tax-efficient way of enhancing shareholder value. Once freed from the parent, managers have greater freedom to pursue ideas to drive operating performance and higher share prices.
A spin-off often fits into the small- or mid-cap stock category. Yet many small- and mid-cap investors often overlook them, since spin-offs often originate with large companies.
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