The largest spinoff situation and most broadly covered is Tyco Intl., which is going to split into
three parts. Tyco is a pretty good collection of businesses -- they are diverse and hold
market-leading positions in many different industries. This is a contrarian play also and they throw off
a lot of cash. Much of that excess cash flow is plowed into share
repurchases. After buying back nearly $1 billion in shares through April,
management authorized another $2 billion.
(continued)

Tyco has been out of favor for so long that it has been in a long term down trend since 2001, an intermediate down trend since Dec of 2004 and a short term down trend for 3 months.
There is 2 ways to play this, buy on a breakout at 28 or scale down trying to find the bottom.
If you scale down buy at 26, 24, 22, 20.
The company will split into 3 companies and it will be like when baby bells were created, the sum will be greater than the whole.
Happy investing.