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On the Line: American Standard CEO Fred Poses

Thursday, 19 Jul 2007 | 10:19 AM ET

On Monday, Cramer recommended putting half a position on American Standard before it reported earnings and half on after the call. The company is splitting up, and it will not exist in a couple of months as we know it. But what should you keep and what should you sell post-spin off? Cramer got American Standard CEO Fred Poses on the line to find out exactly what shareholders will be getting.

American Standard Chmn. & CEO
On the line with Fred Poses, American Standard chmn. & CEO and Mad Money host Jim Cramer



In February, ASD announced it would separate into three businesses: WABCO, its vehicle control systems business which will be spun off on July 31; its bath and kitchen business, which is scheduled to be completed in early fall; and its air conditioning business, which will remain as “one of the largest players in the industry,” Poses said.

The spin offs will allow ASD to go from a $12.5 billion company to one that’s $7.5 billion and focused primarily on its air conditioning business, Poses said.

But Cramer thinks much of the reason why this stock is worth about $60 is because of its strong management team. Without them, is it possible the new ASD won’t be worth as much?


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