Up via the stairs

I love a good corporate spin-off.

PayPal’ spin-off from eBay was a tremendous investment for clients.

Last year, in the midst of a market meltdown, United Technologies (UTX:US) spun off their Otis (the escalator and elevator business) and Carrier Global (the heating, ventilation, and air conditioning company).

Carrier shares have tripled in the past 12 months and Otis’ have nearly doubled.

Market conditions presented an opportune moment to accumulate the stocks especially when combined with ETF managers divesting their newly assigned stock holdings as they didn’t meet their index weighting criterium etc etc.

Who would of thought that the shares of an elevator business would climb in value in amongst a pandemic which disrupted the commercial office real estate market?

Today, I’m trimming the Otis Worldwide position.

May 4, 2021

by Rob Zdravevski

rob@karriasset.com.au

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