Why The Manitowoc Company, Inc.'s Stock Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Manitowoc Company  (NYSE: MTW  ) jumped 11% today after the company was pushed to spin off part of its business.

So what: Investment firm Relational Investors has urged Manitowoc to spin off its food business that sells refrigerators and ovens for commercial kitchens. Management said today that it has retained Goldman Sachs as an advisor on a potential sale, which excited investors today.  

Now what: The crane and food service businesses don't necessarily go together but the businesses are fairly similar in size with $467 million and $383 million in revenue, respectively. But if management can find a buyer who will pay more than the market is pricing the business, it would be a positive turn for shareholders. Speculating on a sale is dangerous so I wouldn't be a buyer today, but keep an eye on how this plays out in the future because a sale would change the fundamental investment thesis to a crane-only business model.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3011280, ~/Articles/ArticleHandler.aspx, 11/23/2014 12:27:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement