Five Reasons It May Pay to Discover

Lately, all the headlines have been about acquisitions and stock buybacks -- headlines about companies (and huge chunks of companies) disappearing from the market into private or larger corporate hands.

So when a big company spins off a smaller company, especially just before the market doldrums of the Fourth of July week, it doesn't get much fanfare.

Such was the case when financial services giant Morgan Stanley (MS Quote - Cramer on MS - Stock Picks) spun off the bulk of its Discover Financial Services (DFS Quote - Cramer on DFS - Stock Picks) to its shareholders on Friday, July 2.

And little fanfare can mean lots of opportunity for the Millionaire Zone investor.

Now, something similar happened just a little over a year ago.

Want more? Check out TheStreet.com TV video. Jennifer Openshaw looks to discover a deal.

Credit-card issuer MasterCard International (MA Quote - Cramer on MA - Stock Picks) went public (OK, it wasn't a spinoff). A group of banks took MA public, and it rolled out rather weakly at $39 a share, down some 10% from the IPO price. Investors climbed on board after that, and now MA trades at $155.

Will investors discover Discover and bring the same result?

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