Some Web finance sites that quote stock prices listed shares of Technology Solutions as falling by as much as 80 percent while other sites posted a jump of more than 300 percent. The truth was somewhere in between.
Both companies have been trading under a single ticker symbol since Feb. 10, and investors could only buy shares of eLoyalty on a "when issued" basis. That meant they could buy the shares but not officially own them until today, when the spin-off was completed.
An investor who buys shares on a when-issued basis is making a bet that the shares will go higher when the stock begins trading on its own.
Shares of the combined company closed at $37.94 yesterday, with eLoyalty valued at $35.88 and Technology Solutions at $2.06.
At the close of regular trading today, Technology Solutions climbed to $7.63, while eLoyalty ended at $39.38.
The shares of Technology Solutions, which designs and manages computer systems for large companies, are undervalued as a result of the spin-off, said Brian Maimone, an analyst with ING Barings, who rates Technology Solutions a "strong buy."
"The valuation didn't make sense," Maimone said. "This is the first opportunity to go in and buy the TSC name."
Bloomberg contributed to this report.