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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy stock spinoffs could present a buying opportunity for investorsJim Osman, founder of Edge Consulting Group, discusses the short and longer-term performance of companies and the businesses they spin off, as GE gets set to spin out its power generation division.
Persons: Jim Osman Organizations: Edge Consulting, GE
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Persons: , Jeff Bezos, Lauren Sanchez, Mark Gadala, @markgadala, I'm, Rob Kachelriess Organizations: Service, Forbes, rbs Locations: Las Vegas
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Edge Group’s Jim Osman on Alibaba spinoff investment opportunityJim Osman, The Edge Group, joins CNBC's "Fast Money" to discuss the fallout from the Alibaba split.
While Alibaba announced it would split its company as a move "designed to unlock shareholder value and foster market competitiveness," " Fast Money " traders aren't so sure about buying the stock. The Chinese tech giant announced Tuesday it would divide its company into six business groups. BABA 1D mountain Alibaba stock However, a couple of the "Fast Money" traders are hesitant as to whether the stock is now a good play. This is a wait-and-see moment," said Tim Seymour, founder and chief investment officer of Seymour Asset Management. She said that while sentiments with Chinese tech companies could potentially have bottomed out, she is unsure how the split will be executed.
Many of them are preparing for the next phase of life in the stock market — one characterized by stimulus uncertainty and a US economic recovery that's lagging the rest of the world. He foresees a so-called squeeze higher for value stocks, and recommends that investors position their portfolios to profit from a rotation away from popular growth names. Look no further:Chart of the weekJPMorganThe JPMorgan chart above — compiled by the firm's quant guru, Marko Kolanovic — shows that value stocks are now trading at a record cheapness relative to growth. Kolanovic's takeaway from this trend is that value stocks are susceptible to a squeeze higher, and investors should rightly position their portfolios ahead of time. — Marko Kolanovic, global head of macro quantitative and derivatives research at JPMorgan, on why he sees a value-stock rally in the cards
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