Old School Value

Dr Pepper Snapple (DPS) Spinoff

In part four of the series on special situations, I'll briefly present a recent spinoff. Dr Pepper Snapple. This series is based on the book You can be a stock market genius! so for additional information, be sure to read it yourself.

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Profit From Special Situations – Spinoffs

Spinoffs can take many forms but a simple definition can be defined as a corporation taking one of its subsidiary or business division and then separating it to create a new company. A spinoff usually occurs because the company wants the public to fully recognize the underlying assets of the division and to get a better valuation of the whole company. The newly created company is then valued by the market independently.

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