http://seekingalpha.com/article/561301-phillips-66-offers-opportunity-after-spin?source=yahoo
May 4, 2012
After spin off Phillips 66 (PSX) earlier this week, the stock may be artificially depressed due to selling pressure from institutional investors more accustomed to holding the parent than a spin-off entity that is less well known to them and may not meet their investment mandate. Quantitative analysis of past spin-offs supports this view.
In addition, on a fundamental valuation basis Phillips may be reasonable. The exact timing on a Phillips 66 purchase is hard to finesse, but it is probable that the month of May will present a good opportunity to purchase Phillips 66 stock and anticipate strong expected one year outperformance in the region of 22% if history is any guide, albeit with relatively high volatility - there is a 1 in 3 chance based on historics than a spin off underperforms the market.
Opportunities related to spin-offs
(Article does continue. Zim.)
Mad Poet Strikes Again.
| 