Stock spinoffs typically don’t do well initially. Unloved by shareholders of the former parent company, often misunderstood by the market and sometimes laden with debt or other baggage the parent no longer wanted to carry, spinoff stocks can take time to find their footing.
Yet such strategic investments represent an opportunity for savvy investors. If the spinoff falls out of the gate, it may be a great time to pick up discounted shares. Then hold on through the initial turbulence until the company works out the kinks of being set free.
The following are three stock spinoffs set to occur in the months ahead. Let’s look more closely at them to see whether they are worth your investment dollars.
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