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BigBadWolf

05/01/23 10:01 AM

#58108 RE: BigBadWolf #58091

How Do Spinoffs Impact Investors in Parent and Subsidiary Companies?
By GREG DEPERSIO
Updated April 27, 2022
Reviewed by KHADIJA KHARTIT
A spinoff is created when a company forms some part of its operations into a separate entity and distributes shares in it tax free to shareholders of the parent company. he number of shares that a parent company shareholder receives is based on the number they own in the parent company

When a spinoff's shares start trading on a stock exchange, the value of the parent company's stock may drop by the value of the new company's stock. This is due to the fact that the parent company stock no longer reflects the value of the unit that was spun off. Parent company shareholders shouldn't be concerned by this price change because they own the spinoff's shares as well.

The spinoff will get a new name and a new management (unless it had an experienced management in place prior to the spinoff). Spinoffs have generally performed successfully over time.

KEY TAKEAWAYS
A spinoff is created when a company forms some part of its operations into a new entity and issues stock in it to parent company shareholders.
The number of shares received depends on the number of shares an investor holds in the parent company.
Spinoffs can have great potential for growth due to their smaller size and a management motivated to achieve success.
Due to stock price volatility, spinoffs can underperform in weak markets and outperform in strong markets.
Historically, spinoffs have been good investments for investors.
Reasons for Spinoffs
Companies create a spinoff for several reasons, all of them grounded in added financial return for the parent company.

For one, a company may create a spinoff because, as part of the company, a division didn't fit well with its core competencies. As an independent company, the spinoff may focus more effectively on its own operations and flourish. The parent company then can better utilize its own resources for future successes, as well.

If a company has sought, but failed to interest, a buyer in purchasing a division, it may decide that a spinoff is its next best option. As a spinoff, the newly restructured division may exceed its past performance when part of the parent company and boost financial gains.


TSOI 0.0028 -0.0001 (-3.45%
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BigBadWolf

05/01/23 12:28 PM

#58121 RE: BigBadWolf #58091

Speaking of mental disorders;-)

Narcissistic personality disorder is a mental health condition in which people have an unreasonably high sense of their own importance. They need and seek too much attention and want people to admire them. People with this disorder may lack the ability to understand or care about the feelings of others. But behind this mask of extreme confidence, they are not sure of their self-worth and are easily upset by the slightest criticism


A narcissistic personality disorder causes problems in many areas of life, such as relationships, work, school or financial matters. People with narcissistic personality disorder may be generally unhappy and disappointed when they're not given the special favors or admiration that they believe they deserve. They may find their relationships troubled and unfulfilling, and other people may not enjoy being around them.


https://www.mayoclinic.org/diseases-conditions/narcissistic-personality-disorder/symptoms-causes/syc-20366662

https://www.ncbi.nlm.nih.gov/books/NBK556001/

7 bad leadership qualities CEOs should avoid
You don't hold yourself accountable and place blame on others. ...
You act like a bully. ...
You don't actively listen. ...
You're oblivious to weaknesses. ...
You act selfishly. ...
You're indecisive. ...
You aren't willing to keep learning.



A dysfunctional board can be damaging on its own, but it only gets worse if that dysfunction becomes public


https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171678401

another referral for Dixon's Praise Me Forum then decide for yourselves


Until CEO Boi becomes a truthful man definitely not
Bullish
Bullish