I Won't Be Riding Down Phillips 66
Owning the shares of ConocoPhilips (COP) in the past three months has been a real trader's game. But now that the creation of the new Phillips 66 downstream spinoff will take place on May 1, what should you do with the stock? I'll tell you -- smart investors should probably shed the refining piece of the stock when it separates, just as Conoco itself is doing as a company.
Since announcing the spinoff of its downstream assets into a separate company, shares of the third-largest U.S. integrated oil stock have been generally outperforming their domestic competitors, an old "sum of the parts" trade that has worked beautifully. An even more savvy trade employed by the hedge funders has been to trade the Conoco spinoff against Chevron (CVX) or Exxon Mobil (XOM). It was a particular winner through February and March as the shares of Conoco neared their vesting date on April 16. ...392 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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