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National Oilwell Varco's Spinoff Turns CEO's Head

On Tuesday's MarketFoolery, host Chris Hill and Motley Fool Funds analyst Bill Mann answer an email about the National Oilwell Varco (NYSE: NOV  ) spinoff. The email asks, "Could you guys please talk about how one should handle the new DNOW investment I'm not part of?"

Chris says the surprising part is that National Oilwell Varco CEO Pete Miller will be moving with the spinoff. Bill, meanwhile, doesn't think investors need to worry about the stock price over the short term, because of institutional shareholders that have certain mandates. Bill dives into what investors should take away from Miller's move with the spinoff, and Chris agrees, but he also considers the homework for investors and the reasons to hold or to not hold on to the spinoff stocks. 

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Read/Post Comments (3) | Recommend This Article (6)

Comments from our Foolish Readers

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  • Report this Comment On June 11, 2014, at 8:13 AM, Edward wrote:

    Love the podcast, but could you please not turn up the volume level at the end. I listen while working out and it's very distracting and annoying when you amp up the jingle.

    Thanks for the otherwise great podcast!

    Edward in Maine

  • Report this Comment On June 11, 2014, at 4:22 PM, tonymagoo wrote:

    I have been wondering when FOOLS are going to discuss this spin-off by NOV. In essence, NOV sent away $8. to $9. of stock value but the market has not reacted to this in any way. Holders received 1 share of DHOW for every 4 shares of NOV they owned as of the end of May, give or take a few days. These DHOW shares are trading in the low 30's or roughly $8 per NOV share owned.

    Why hasn't NOV dropped by that range? Was the inventory supply/distributor business of DHOW an albatross for NOV? Or, are people just missing the boat. To me it looks like folks should short NOV.

  • Report this Comment On June 11, 2014, at 5:09 PM, tonymagoo wrote:

    Why haven't NOV prices dropped to reflect the spin-off of a business that is presently being traded in the low 30's which represents roughly $8/share of NOV?

    DHOW shares were distributed as 1 for every 4 NOV share.

    Tony in Chicago

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Chris Hill

Full-time host of the Motley Fool Money radio show, MarketFoolery podcast, and other things. Part-time connoisseur of movies, basketball & fine bourbon.

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8/28/2015 4:02 PM
NOV $41.65 Up +0.29 +0.70%
National Oilwell V… CAPS Rating: *****