“Do one thing and do it well.” Over time, companies forget that sage advice, preferring instead to build mini empires. Some end up straying away from the company’s original objective, others are too small to make a difference.
The result: a bloated stock where neither the primary business nor the side projects do really well. The answer many companies take is to spin off the ancillary business into a free-standing, publicly traded company. It allows the new company to dedicate more resources towards serving its market instead of getting lost in the shuffle of the parent.
Here are three stock spinoffs set to occur within the next 12 months. Let’s take a closer look at each and see whether you should buy the business that will be going public.
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