When Forest Oil(FST_) announced in late 2010 that it would spin off its Canadian energy fields in a new company called Lone Pine Resources(LPR_), investors shrugged.
But investors who bought the parent of the spin-off when the deal was completed on Oct. 3, 2011, are glad to have waited. Since then, shares of Forest Oil have moved up from $9 to a recent $14. (Shares dropped from $15 to $9 in early October when the spin-off took effect, pushing shares up to an equivalent of $20 when the value of the spin-off is included).
The key catalyst: Forest's remaining business has become much easier for investors to assess.
Perhaps the main takeaway is that you should hold off buying a company when it announces a plan to spin off a division. Instead, you should pounce when the deal is done. Not only has Forest Oil rebounded more than 50% after the event took place, but Lone Pine Resources is up more than 20% since early October as well.
Just one day after that deal was done, on Oct. 4, 2011, Fortune Brands(FO_), a diversified conglomerate, cleaned up its act by spinning out its liquor business, now known as Beam(BEAM_). The remaining business, known as Fortune Brands Home & Security(FBHS_), became more of a pure play on the company's security and home construction businesses. Since then, shares of Fortune Brands are up 57%, while Beam is up 26%.
Look for more of these spin-offs to come.
Investment bankers, hurting for fresh ideas these days, are likely knocking on the door of any major corporation that will listen to their sales pitch. Breaking up into two or more pieces can be profitable for shareholders if the company is suffering from a "conglomerate discount." This term refers to a company's relatively low valuation because investors have a hard time assigning a price-to-earnings (P/E) multiple on a group of different businesses with varying growth rates.
As an example, recent media reports suggested that Cisco Systems(CSCO_) wanted to unload its cable-TV set-top box business, because the unit carried lower margins and smaller growth rates than Cisco's other businesses. In theory, Cisco would garner a higher P/E ratio if it was a faster-growing company with a higher margin profile. Cisco has since refuted the chatter, so this may be an event that takes place down the road -- if at all.
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Friday 24 February 2012
Tuesday 14 February 2012
Stock future will rise ahead U.S. data
U.S. stock futures rise after gains in Europe were, as investors awaited a batch of U.S. economic data.
Dow Jones Industrial Average ($ INDU 0.57%) to 12 848 futures up 13 points. S & P 500 ($ INX 0.00%) in 1350 was 1.2 points on the futures markets. Nasdaq (COMPX $ 0.00%) in the 2570 futures were 2.7 points.
Moody's Investors Service downgraded the debt of six European countries on the open market sentiment and reminded investors that the recession is in the shadows a long-term risk. Degraded countries, Italy and Spain, their Triple-A, like Portugal, Slovakia, Slovenia and Malta are lost.
In Europe, a German investor confidence to its highest level in 10 months reading ZEW Centre for Economic Research in Mannheim, according to.
Germany, the DAX was 0.4%, while London's FTSE 0.12%. Japan's Nikkei index down 0.59%, and Hong Kong's Hang Seng was 0.15%.
At the same time, Greece with its European creditors to obtain approval for a rescue mission on track, investors may pay attention to the domestic economy Tuesday turn on the news.
U.S. retail sales for January rose to 0.9%, according to Thomson Reuters, will get to 0.1% last month to add. 08.30 Clock Department of Commerce will release its report on the amount
Dow Jones Industrial Average ($ INDU 0.57%) to 12 848 futures up 13 points. S & P 500 ($ INX 0.00%) in 1350 was 1.2 points on the futures markets. Nasdaq (COMPX $ 0.00%) in the 2570 futures were 2.7 points.
Moody's Investors Service downgraded the debt of six European countries on the open market sentiment and reminded investors that the recession is in the shadows a long-term risk. Degraded countries, Italy and Spain, their Triple-A, like Portugal, Slovakia, Slovenia and Malta are lost.
In Europe, a German investor confidence to its highest level in 10 months reading ZEW Centre for Economic Research in Mannheim, according to.
Germany, the DAX was 0.4%, while London's FTSE 0.12%. Japan's Nikkei index down 0.59%, and Hong Kong's Hang Seng was 0.15%.
At the same time, Greece with its European creditors to obtain approval for a rescue mission on track, investors may pay attention to the domestic economy Tuesday turn on the news.
U.S. retail sales for January rose to 0.9%, according to Thomson Reuters, will get to 0.1% last month to add. 08.30 Clock Department of Commerce will release its report on the amount
Saturday 11 February 2012
Best Money website over internet
There are many other worthy sites out there, sites that, like these, are all about money: making it, spending it, saving it, investing it, protecting it.
But this is my list. These are the sites I like, the ones I consistently turn to for good information, solid advice, unique perspectives, really cool tools and, in at least a few cases, good laughs. They're sites that consistently offer something their competitors don't, which makes them worth investing my scarcest resources: time and attention.
If sites you love aren't on this list, sorry. But check these out anyway. I think you'll find some new favorites, too.
Big media sites (5)
What distinguishes these sites: resources. Professional journalists interview experts in various fields to offer uncommon insight and analysis.
Bucks: The New York Times' Bucks blog covers "consumer tactics" regarding money, which means an array of articles and posts about things that affect your wallet. High-quality reporting from Times columnist Ron Lieber and personal-finance reporter Tara Siegel Bernard make this blog a daily must-read.
Liz Weston
Liz Weston
Kiplinger Personal Finance: The oldest (and best) personal-finance magazine covers the gamut of money topics, from budgeting to travel, in an accessible way.
Planet Money: National Public Radio's economics team does a phenomenal job of explaining the often-complex and sometimes-obscure world of money in ways that real people can actually understand. Their podcasts about the financial crises, both here and in Europe, are required listening.
SmartMoney: The Wall Street Journal's personal-finance magazine offers a wealth of helpful tools as well as money news and advice.
Smart Spending: Yeah, it's cross-promotion, but MSN Money's Smart Spending blog is still one of my favorite places to check for savings tips, commentaries on frugality and a roundup of good deals around the Web.
US coupon craze turns to medical care
View more MSN videosGo to Nightly News
Money bloggers (10)
Many of these sites started out as one-person operations. Some are still that way, while others have expanded with guest writers and staff bloggers to offer a wider array of content. Either way, they're worth reading.
Bargaineering: Jim Wang's blog offers plenty of good personal-finance content along with reviews of banks, credit card offers, books and products.
Consumerism Commentary: "Flexo," aka Luke Landes, started a trend by posting his assets and liabilities for everybody to see. He used the public exposure to hold himself accountable for learning more about money and reaching his financial goals. Now that he's blogged his way to solvency, he has staff writers and a regular podcast that covers the gamut of money topics.
Daily Worth: A site co-founded by my friend and former MSN Money colleague MP Dunleavey, Daily Worth describes itself as "a community of women who talk money." Its short, pithy articles offer a fresh take on financial matters of particular relevance to women.
The Dollar Stretcher: This granddaddy of frugal-living sites offers an enormous library of articles and tips that's constantly refreshed with new ideas. Even black-belt frugality experts will find new information here.
Financial Integrity: This is the site run by the New Road Map Foundation and Vicki Robin, a co-author of the seminal voluntary-simplicity guidebook "Your Money or Your Life." Learn the steps to create financial freedom and align your financial life with your personal values.
Get Rich Slowly: Blogger J.D. Roth dug his way out of debt and tells you how you can, too, with the help of a team of writers. An active community of readers provides additional insights and commentary.
PT Money: Philip Taylor finally hit the big time earlier this year when he attracted the notice of none other than Suze Orman, the queen bee of personal finance. She called him an "idiot." (Orman flipped out on Twitter after bloggers, including Taylor, criticized her new Approved prepaid card.) She later apologized. She really got this one wrong, since Taylor is a thoughtful personal-finance blogger who offers helpful reviews of financial products and services.
The Simple Dollar: Like Roth, Trent Hamm has experienced and conquered debt. He grew up in poverty and understands how early deprivation can lead to later disasters with money.
Surviving and Thriving: Donna Freedman is a contributor to MSN Money and Get Rich Slowly. She's also a good friend; we met and bonded at the Anchorage Daily News many moons ago. So I can tell you with confidence that she's one remarkable lady. Donna grew up poor, was a single mom for a while and was thrown back near the poverty line by her divorce. Her resilience, compassion and frugal chops are unmatched -- plus, she's wickedly funny.
Wise Bread: A variety of voices enlivens Wise Bread, a site devoted to "living large on a small budget." In addition to personal finance and frugal living, Wise Bread provides commentary on careers and "life hacks." Check out its list of 100-plus most popular personal-finance blogs for even more great sites to visit.
Get free trial of stock Commodity tips and make money @ www.tips.biz
But this is my list. These are the sites I like, the ones I consistently turn to for good information, solid advice, unique perspectives, really cool tools and, in at least a few cases, good laughs. They're sites that consistently offer something their competitors don't, which makes them worth investing my scarcest resources: time and attention.
If sites you love aren't on this list, sorry. But check these out anyway. I think you'll find some new favorites, too.
Big media sites (5)
What distinguishes these sites: resources. Professional journalists interview experts in various fields to offer uncommon insight and analysis.
Bucks: The New York Times' Bucks blog covers "consumer tactics" regarding money, which means an array of articles and posts about things that affect your wallet. High-quality reporting from Times columnist Ron Lieber and personal-finance reporter Tara Siegel Bernard make this blog a daily must-read.
Liz Weston
Liz Weston
Kiplinger Personal Finance: The oldest (and best) personal-finance magazine covers the gamut of money topics, from budgeting to travel, in an accessible way.
Planet Money: National Public Radio's economics team does a phenomenal job of explaining the often-complex and sometimes-obscure world of money in ways that real people can actually understand. Their podcasts about the financial crises, both here and in Europe, are required listening.
SmartMoney: The Wall Street Journal's personal-finance magazine offers a wealth of helpful tools as well as money news and advice.
Smart Spending: Yeah, it's cross-promotion, but MSN Money's Smart Spending blog is still one of my favorite places to check for savings tips, commentaries on frugality and a roundup of good deals around the Web.
US coupon craze turns to medical care
View more MSN videosGo to Nightly News
Money bloggers (10)
Many of these sites started out as one-person operations. Some are still that way, while others have expanded with guest writers and staff bloggers to offer a wider array of content. Either way, they're worth reading.
Bargaineering: Jim Wang's blog offers plenty of good personal-finance content along with reviews of banks, credit card offers, books and products.
Consumerism Commentary: "Flexo," aka Luke Landes, started a trend by posting his assets and liabilities for everybody to see. He used the public exposure to hold himself accountable for learning more about money and reaching his financial goals. Now that he's blogged his way to solvency, he has staff writers and a regular podcast that covers the gamut of money topics.
Daily Worth: A site co-founded by my friend and former MSN Money colleague MP Dunleavey, Daily Worth describes itself as "a community of women who talk money." Its short, pithy articles offer a fresh take on financial matters of particular relevance to women.
The Dollar Stretcher: This granddaddy of frugal-living sites offers an enormous library of articles and tips that's constantly refreshed with new ideas. Even black-belt frugality experts will find new information here.
Financial Integrity: This is the site run by the New Road Map Foundation and Vicki Robin, a co-author of the seminal voluntary-simplicity guidebook "Your Money or Your Life." Learn the steps to create financial freedom and align your financial life with your personal values.
Get Rich Slowly: Blogger J.D. Roth dug his way out of debt and tells you how you can, too, with the help of a team of writers. An active community of readers provides additional insights and commentary.
PT Money: Philip Taylor finally hit the big time earlier this year when he attracted the notice of none other than Suze Orman, the queen bee of personal finance. She called him an "idiot." (Orman flipped out on Twitter after bloggers, including Taylor, criticized her new Approved prepaid card.) She later apologized. She really got this one wrong, since Taylor is a thoughtful personal-finance blogger who offers helpful reviews of financial products and services.
The Simple Dollar: Like Roth, Trent Hamm has experienced and conquered debt. He grew up in poverty and understands how early deprivation can lead to later disasters with money.
Surviving and Thriving: Donna Freedman is a contributor to MSN Money and Get Rich Slowly. She's also a good friend; we met and bonded at the Anchorage Daily News many moons ago. So I can tell you with confidence that she's one remarkable lady. Donna grew up poor, was a single mom for a while and was thrown back near the poverty line by her divorce. Her resilience, compassion and frugal chops are unmatched -- plus, she's wickedly funny.
Wise Bread: A variety of voices enlivens Wise Bread, a site devoted to "living large on a small budget." In addition to personal finance and frugal living, Wise Bread provides commentary on careers and "life hacks." Check out its list of 100-plus most popular personal-finance blogs for even more great sites to visit.
Get free trial of stock Commodity tips and make money @ www.tips.biz
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