An Intriguing Cyber Spin-Out

Over the last several months I have been bullish on the shares of Xylem (XYL), a pure play water-solutions company that addresses several of the long-term pain points associated with water. Though the stock has only traded publicly for a little less than a year, the company had several years of operating history and financials prior to its 2012 spin-out from ITT (ITT). To me, spin-outs -- or spinoffs, as some call them -- can represent solid investment opportunities. In some ways, they are far better than initial public offerings, and that's why I always keep my eyes and ears open for new ones. For the record, I still am bullish on Xylem shares over the coming quarters, and my price target on the shares remains at $29.

Away from that, one recently announced spin-out came from Science Applications International Corporation (SAI): Following a strategic review, its board of directors has authorized splitting the company into two independent publicly traded companies. One of the key reasons for the split is organizational conflicts of interest (OCI) that has been limited businesses inside the company from competing on certain contracts....491 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.