Spin-offs from larger companies tend to be attractive stocks. The feeling goes that the mother-company would not spin off a dog. By spinning a dog of a division to its shareholders and to the public the mother company would suffer from investor back lash. Academic studies have shown that spun stocks do well.
So, I bought what I could of MJN. MJN’s primary product is infant formula and was spun out of Bristol Myers. You will notice that Abbott Labs is not participating in today’s rally, in part I assume, to the fact that ABT competes in its own infant formula. I have retained my ABT shares.
