As I've alluded to in previous articles, I believe recent spin-offs to be among the best hunting grounds for attractive investment opportunities. There has been a fair amount of this type of corporate action in recent months, creating plenty of opportunities to partake in their positive abnormal returns. One in particular that I think is poised to create a lot of value for its shareholders is Mallinckrodt Pharmaceuticals (MNK).
On Monday, MNK separated from Covidien plc (COV), which is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. MNK, which was the former pharmaceutical arm of COV, is organized as follows:
As the diagram indicates, the company...
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