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.
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