RE: Boohoo bosses mulling over break-up of business28 Sep 2024 15:51
I think it could be a good move.
Peter Lynch mentioned in one of his books what he calls an "asset play", where you have a business with assets of say £5 a share but it's trading at 50p and either the SP recovers or they liquidate the business. He gives an example where the business held stock in several companies and decided to liquidate giving shareholders a payout worth significantly more than the SP.
Also, I recently read "misbehaving" by Richard Thaler and he gave an example of a tech business that spun off part if their business and the stock if the new business was valued so high that you could short it and buy the stock of the parent company tk make a profit. (it was hard to short though because of a alck of willing lenders of the stock.)
The market is crazy and the SP has nothing to do with real business values.