Comment on Why Investors Need to Be Cautious When Companies Split

Why Investors Need to Be Cautious When Companies Split

NEW YORK (TheStreet) -- As companies fret over the current market selloff and uncertain economy, a growing number of them are turning to spinoffs to boost shareholder value. Aluminum maker Alcoa became the latest to announce plans to split into two separate companies on Monday. But experts caution the spinoff arena is getting crowded so investors need to scrutinize each plan carefully for debt levels, pricing, sector market performance and other factors before jumping in. Must Read: George Soros' Top 5 Dividend Stock Picks for 2015 "We see more and more spinoffs coming to market," said Jonathan Morgan, a deals analyst at Edge Consulting Group, an equity research firm that specializes in spinoffs.

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News