Over the years, I have researched many companies that consisted of two or more disparate divisions. Often these stocks have traded inexpensively, but, without any inclination to split the company up, their low valuations have persisted. Last year, I encountered one such company, A.T. Cross (NASDAQ:ATX).
On February 4th, after the close, ATX announced that it has engaged the services of an advisor in order to evaluate strategic options for its Cross Accessories Division ("CAD"). While the stock jumped up about 11%, close to its 52-week high, I think that there could be substantial further gains should the company divest this slow-growing division to focus on its rapidly-growing Cross Optical Group ("COG"). In my view, the stock could...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|