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.
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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