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I bought FMC Technologies (FTI) as you recommended and it has done quite well. While reading their annual report, I found that they said that they will spin off the food and airport businesses around the middle of the year. Do you advocate selling spin offs, or will you offer an individual opinion when the spin off occurs?

Typically, a company conducts a spin-off to increase shareholder value. I usually sell the spin-offs, since it is hard to measure risk on stocks than have limited trading history. As we get closer to FMC Technologies' (FTI) proposed spin-off, I will make a decision on whether to sell the new companies that FTI will be spinning off as a separate company. I should add that on Wednesday, FMC Technologies filed its plan with regulators to spin off its John Bean subsidiary, which provides technology to the food processing and air transportation industries. This will be a tax-free transaction, so there will not be any tax consequences until you sell John Bean, which will be traded on the New York Stock Exchange under the ticker symbol “JBT.”

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