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Smash ‘Em Up w/ Dennis Kneale

Are some companies just too big for their own good?

For two decades bankers have cobbled together giant companies with a myriad of moving parts - Sony, News Corp., and Disney , to name but a few.

And many times the sum of the parts is worth more than the whole. When that’s the case CNBC’s Dennis Kneale says, “Smash em up!”

Kneale may be onto something; smash-ups have a successful history.

In 1984 the government split up the old At&T into 7 regional bells and a long-distance giant. The move unlocked a vault of value. Then in 1996, AT&T broke itself up again and that created Lucent, one of the hottest spinoffs ever.

More recently:
- Time Warner spun off its cable unit
- Cablevision spun off Madison Square Garden
- GE is selling 51% of NBC Universal to Comcast.

But Kneale’s favorite smashup was Barry Diller's IAC in 2008. Since IAC split into five separate firms, their combined stock value is up some 200%!

So, who should rip a page out of the smash em up playbook? What big conglomerates would be better off crushed?

That will be the subject of a series of reports from Kneale on future episodes of Fast Money. Stay tuned!



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Trader disclosure: On July 12, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM)l Finerman Owns (WFC) Preferred; Finerman's Firm And Finerman Own (BBY); Terranova owns (GOOG), (AMZN), (MON), (APC), (GMCR), (MYL), (MRVL), (BAC), (ADI), (ADBE), (AKAM), (HES), (CVS), (AXP), (EMC), (ABT); Kelly Is Short (GS); Kelly Owns (BP) Puts; Najarian Owns (INTC) Call Spreads

For Joe Terranova
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Virtus Investment Partners owns more than 1% of (CASS)
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Funds Manged By Dennis Gartman Are Long Natural Gas Futures, Natural Gas Trusts
Funds Manged By Dennis Gartman Own (AAPL)
Funds Manged By Dennis Gartman Are Short (GOOG)
Funds Manged By Dennis Gartman Are Short (GS)

For Gene Munster
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For Mike Khouw
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For Gary Shilling
Shilling Is Long U.S. Dollar Against Euro, Australian Dollar
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For Carter Worth
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Symbol
Price
 
Change
%Change
DIS
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FOXA
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6758.T
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