Mispricing after spinning off
$Solventum(SOLV.US$ $3M(MMM.US$ It’s pretty common large business spin off is not properly priced. Unsure then just basket them, and sell and buy together.
Wall street voodoo, different industry has different multiple… Dow and Industry fund will sell, and medical fund will buy in. Debt allocation make things more complicated. Say profit is 9:1, but Debt could allocated 18: 1, or 5: 1, or even 3:1, apparently different price.
Recall UTX spin off. RTX was bad at that time, got doubled. CARR is 4 times, OTIS from 40 to 96.
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