Spinoffs are back.  It has been established for some time that there is a ‘conglomerate discount.’  The stock market values highly diversified companies at less than the sum of their parts.  Companies are embracing this view with a surge in spinoff activity.  Compliant debt markets and activist investors are helping to push this trend along as well.  Diversified large cap stocks are a place to hunt for these opportunities.  Investors should note that trading the spun off entity is tricky.  For example AMC Networks tumbled from its when-issued price.  In today’s screencast a look the spinoff trend.

Items mentioned in the above screencast:

Corporate America has embraced the spinoff.  (FT)

Look to large caps for spinoff opportunities. (Breakingviews)

Heed the lesson of AMC Networks ($AMCX). (Dealbook)

Daily price chart of Cablevision ($CVC).  (Finviz)

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