"Harvard Business Review found half of all spinoffs failed to create any new value for investors in the two years following the separation, with 25% destroying as much as 50% of their combined market cap."
"Consulting group The Edge found 56% destroyed shareholder value after one month, 47% had negative returns after three months, and 38% failed to generate any new value after a year."
"Yet HBR also found the top 25% generated a 75% increase in combined market cap after two years while The Edge said 44% of spinoffs gained more than 20% in value after one year."
"Stocks with huge potential, like Grail, often need careful analysis before investing, as data indicates a significant proportion of spinoffs underperform after separation."
Collection
[
|
...
]