Stockchase Opinions

Michael Bowman Guggenheim Spin-Off ETF CSD-N PAST TOP PICK Jan 15, 2015

(Top Pick Feb 7/14, Up 5.00%) Companies that have been spun off. Shareholders receiving the stock usually sell them. This EFT buys them after the first 6 months. They are usually good companies.

$44.200

Stock price when the opinion was issued

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TOP PICK
A Spin-Off is a company distributing 100% of a subsidiary to existing shareholders. Initially, most of the shareholders do not want the spin-off, so it is immediately sold, causing a stock to decline. They always seem to be good quality companies and tend to outperform.
PAST TOP PICK
(A Top Pick April 30/12. Up 15.56%.) These are companies that have spun off other companies.
BUY

One of the nice things about ETFs is that it can buy you access to a particular theme or sector or asset class. In this case, you are buying access to spinoff candidates. This has been one of the stronger performing ETFs. Spinoffs tend to do well because very often management groups set up spinoffs for success.

TOP PICK

A “Spin-Off” is a company that the parent will spin off to shareholders. Shareholders usually sell spinoffs in a portfolio. They look at it as a gift and don’t really spend a lot of time looking at the company itself. This ETF buys companies that have been spun off in the past 30 months but not in the previous 6 months.