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Re: trazbull post# 122774

Wednesday, 03/26/2014 8:34:59 AM

Wednesday, March 26, 2014 8:34:59 AM

Post# of 158400
"The most typical reason for a spinoff is that the stock price of a large diversified company does not fully reflect the value of all its diverse components, so the management feels that it can enhance shareholder value by spinning off certain assets into a separate company. Another reason may be that a parent company has built a valuable fast-growing subsidiary whose business differs from the main business of the parent company, so the management feels that it is best for the new subsidiary to function as an independent entity. Whatever the reason, the underlying math is essentially the same: the parts should be worth more than the whole."

Is Koos planning on acquiring another company inside BSMN and growing it as well, or are the resources already maxed out?


http://wiki.fool.com/What_Effect_Does_a_Spinoff_Have_on_a_Stock_Price%3F#sthash.WRCFVJru.dpuf













http://wiki.fool.com/What_Effect_Does_a_Spinoff_Have_on_a_Stock_Price%3F

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