“This is huge. It’s ka-boom!”
That was my then-boss calling me from Wall Street. At the time, I was an analyst in the Financial District in San Francisco.
It was Oct. 19, 1987 – Black Monday – and the stock market had just crashed.
And my boss sounded like he was ready to sell everything.
I had other ideas.
After all, if Macy’s holds a 25% off sale, shoppers rush down in droves. So why do so many investors panic when the market corrects.
By doing so, they miss out on great bargains.
We’re not doing that.
We’re going shopping…
I love corporate spin-offs – and you should, too.
With spin-offs, companies unlock hidden values in their operations and pass them on to shareholders – offering low risks and high probabilities of market-beating profits.
And the past month or so has produced a bonanza.
First, eBay Inc. (Nasdaq: EBAY) said it is spinning off its very successful PayPal digital payments firm. Then, Hewlett-Packard Co. (NYSW: HPQ) announced that it plans to divide itself in half.
And most recently, security software maker Symantec Corp. (Nasdaq: SYMC) joined in and said it’s splitting in two.
Overall, spin-offs are estimated to be worth $1.6 trillion so far this year.
Here’s the hitch.
As promising as all that money sounds, most of these deals won’t take effect until the second half of next year.
But I have uncovered a way to take advantage of the growing market for spin-offs right now.
And we’ll do it with a single investment that has beaten the market by 65% over the last two years