HP or HP: Choose One

摘要

Split a big company in two and the spun-off segment is likely to beat its peers in stock market performance over the next year or two. That's the conclusion of academics such as Purdue's John McConnell and Penn State's Patrick Cusatis, who have studied hundreds of splits, going back to the 1960s. This pattern is about to get a big new test as the granddaddy of all tech conglomerates, Hewlett-Packard, gets ready to cleave itself on Nov. 1, after more than a year of preparation. It's been a messy journey, with 30,000 announced layoffs and more than $2 billion in separation expenses to date. HP's stock price is off 17% since the breakup was announced in October 2014, versus a 4% rise in the S&P 500.