Vishay Intertechnology’s (VSH) planned stock spin-off of the Vishay Precision Group is still on for some time in the middle of 2010 according to Dr. Felix Zandman, Executive Chairman of the Board and Chief Technical and Business Development Officer.
Spin-offs are a good place to look for watchlist candidates in general, but they are even better when the companies involved are healthy and growing, which appears to be the case with Vishay. While their reported 1st quarter earnings were positive, they missed estimates on revenue and the stock’s price is off in early going today.
Still, the book-to-bill ratio was reported to be very strong and that, coupled with increased manufacturing capacity, bodes well for the future.
The stock spin-off provides a reason to look more closely at the parent company and the spin-off. Perhaps one or both should be put on your watchlist. Eventual entry depends on confirmation of some sort that fits your trading system, be it fundamental or technical. In this case, I have adequate reasons for both the parent and the spin-off to go onto my watchlist. What happens from there, time will tell.