There’s a lot of evidence suggesting that spinoff stocks are generally a good idea to watch. Following a split from their parent company, many such firms do well thanks to their efficiency and newly-found flexibility.
They also tend to be undervalued at first which presents an attractive entry point for value investors. That’s why many notable value investors such as Charlie Munger remain adamant that investors find spinoff stocks to watch.
Let’s take a look at three spinoff stocks to watch and discuss whether they will or will not be successful.
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