“Throw-away” stocks soar 110% … 380% … even 1,255% when their owners unload them…and other investors gobble them up!

Not more than one investor in 100 knows the secrets of profiting from this type of special corporate restructuring. And it’s 100% legal!

Dear Canadian investor,

It’s an underappreciated “corporate restructuring” strategy that companies use to unlock hidden value for themselves and their shareholders…

… a “spinoff.”

Specifically, a spinoff occurs when a conglomerate or major firm sets up one of its business divisions as a separate company and then hands out shares in the new company to its investors. This special dividend of sorts maximizes value for everyone.

The bigger parent company often chooses to spin off a small subsidiary, because that business unit is like a tiny unpolished gem: it’s valuable in its own right, but it can get overlooked by stock market players come time to assess the big company’s overall value.

Often, a spinoff starts with the parent company selling a portion of the new company to the public, to establish a market and a following among investors.

That way, by the time of the spinoff, the new company may be liquid enough to be sold relatively easily, retained with some confidence as a worthwhile investment, or even become a target for a lucrative corporate takeover … one that sends stock in the new company even higher.

For example, when Johnson & Johnson spun off its consumer health division, Kenvue, existing J&J shareholders were left with shares in both companies.

And soon after that, Kenvue got a takeover bid from Kimberly-Clark Corporation!

Another case in point: Arconic, an industrial metals and manufacturing company.

We recommended Arconic in August 2023, shortly before it spun off one of its divisions into a separate company, Howmet Aerospace, which specializes in making aircraft engines and parts.

After we told our readers to buy, the market cap for both companies rose 150% – in just 15 months!

Even better, the act of separating a company into two entities often adds value to both the spinoff as well as the parent.

In the Arconic spinoff of Howmet, the deal was a ten-bagger, with a total gain from both the parent and the spinoff of 965.6%.

Unlike initial public offerings, or IPOs, which frequently make front-page headlines, returns for these quieter, off-the-beaten-track spinoffs are grossly under-publicized.

And investors who flock only to IPOs—and miss out on the enormous profit opportunities of spinoffs—do so at their own peril.

Here’s why….

IPOs are inherently riskier than existing stocks. That’s because most initial public offerings come to market when it’s a good time for the company or its insiders to sell. And this may not be, and often isn’t, a good time for you to buy!

The company wants to maximize profits from the sale of its newly issued stock…and therefore it is looking to get the highest possible share price.

Good for them. Not so good a bargain for you and other IPO investors.

In sharp contrast, companies spin off businesses when they feel it isn’t a good time for them to sell those businesses. That can create an excellent buying opportunity for investors.

Also, an IPO involves substantial costs that come out of the proceeds of the new-issue sale.

If you buy an IPO, then you as the buyer pay these costs, which are well above the brokerage cost of buying existing issues.

A University of Florida study analyzed the average market-adjusted returns for a 3-year period of initial public offerings from 2012 to 2021—and shockingly, found that investors lost on average about 19.3% on these IPOs.

Not one investor in a hundred understands or even realizes that spinoffs—and not IPOs—may be the closest you’ll get to a “sure thing” in the stock market.

That’s because both the parent and the spinoff frequently do significantly better than comparable companies—for at least several years after the spinoff takes place.

There are several reasons for the rise in value and share price following a spinoff play.

The biggest one is that, when a division is buried inside a large corporation, its performance can often be masked by other businesses.

Especially when there is little or no synergy between two disparate businesses operating as a single corporate entity.

But in a spinoff deal, that hidden value becomes clearly visible.

Spinoffs often happen when a company wants to offload a division for operational reasons—but recognizes the business operation offers good value.

So, rather than sell that division, the company splits it into a separate entity, and hands out shares in the new company to its own shareholders.

Spinning off or “offloading” its unwanted assets lets parent-company managers focus on the part of their business they want to retain. Usually, they hold on to the part best suited to their talents.

And once it’s spun off, the market can value that separated business operation on its own merits—which can lead to a positive re-valuation—resulting in a healthy increase in share price….

…. Not just for the spinoff—but also for the parent company that gave birth to it!

Consider eBay, the online bidding giant, and its former payments processor, PayPal—spun off in 2015.

Was there some synergy? Well, a little bit, in that both were internet-based businesses.

But looking at those businesses separately, it was clear that each was a potential powerhouse in its own respective niche—and separating the two would unlock their full individual profit potential.

So, what happened?

PayPal was spun out as a separate company when eBay was then trading at $25.03 a share.

Following the split, PayPal immediately rose to $28, and then continued to rise. As for its former parent, eBay, the company soon reached $92.66 for a 270% gain.

Even in spinoff situations where the two businesses are more closely aligned, a spinoff deal can unlock shareholder value.

For example, in the car business, Fiat-Chrysler spun off Ferrari when Fiat was at $7.50—and handed out Ferrari shares to its stockholders in January 2016.

Ferrari began rising almost immediately, and the shares are now up a whopping 734.4%!

Or consider IBM. It spun off Kyndryl, an information technology business that uses AI to help its clients manage their cloud computing networks, in November 2021.

Since then, IBM stock has more than doubled—returning a handsome 132.5% gain for our subscribers.

Research from S&P Global shows that in the 3-year period following the closing date, spun-off entities outperformed their industry peers by a cumulative 22.08% on average.

We say that, in investing, spinoffs could arguably be the closest thing you can find to a sure thing. It all comes down to the incentives.

When a company carries out a spinoff, it sets up one of its subsidiaries or divisions for success as a separate company, then hands out shares in the new company to its own shareholders.

The parent company may hand out the shares as a special dividend. Or, give its shareholders an opportunity to swap shares of the parent company for the shares of the newly established spinoff.

A 25-year-study by The Edge Group revealed that spinoffs exceeded the market by more than 10% yearly.

For that matter, the parent companies also tend to outperform comparable firms for several years after a spinoff.

For example, Fording Canadian Coal Trust (FCC) was one of five spinoffs from the original Canadian Pacific Railway Ltd.

When we recommended FCC in January 2008, it was trading at $47. We liked its prospects as a major metallurgical coal producer for steelmaking, and its steady cash distributions to shareholders.

And we also liked Fording Canadian Coal as a potential takeover candidate…more about spinoffs as takeover targets in a minute.

Not long after we recommended Fording Canadian Coal, Teck Cominco—now Teck Resources—launched a takeover bid that pushed Fording’s shares up 162.3% in 5 months!

So, in our long experience, owning the right spinoffs can pay investors back handsomely.

But note—the emphasis is on the RIGHT spinoffs.

The fact is that things don’t always work out as well as they did for Fording Coal.

Spinoffs and their parents do sometimes run into unforeseeable woes.

And that’s where TSI’s stock market advisory Spinoffs & Takeovers comes in.

We separate the wheat from the chaff….

Showing you which spinoffs have the highest probability of earning you luscious profits.

When 3M spun off its healthcare division as a separate business, Solventum, we were recommending 3M as a buy at $104 a share.

Within 18 months, gains on 3M and Solventum shares had reached 64.6%!

Famously, when eBay spun off PayPal in 2016, PayPal share prices rose almost imperceptibly at first … but over time, PayPal eventually posted a gain of over 600%.

Sometimes, a company will do more than one spinoff—to unlock maximum value from multiple disparate businesses.

A case in point is RTX Corporation, the new name of aerospace and defence contractor United Technologies following its corporate rebranding.

Two of the RTX business lines—one in HVAC (heating, ventilation, and air conditioning), the other focused on making and servicing elevators—were spun off into new companies: Carrier Global and Otis Worldwide.

And the spinoff deal was a triple-play winner, with…

…gains of 173.9% for the parent company, RTX…

…77.0% returns for the Otis Elevator spinoff….

…and a whopping 248.8% jump in share price for Carrier!

Sometimes a division’s value is “hidden” inside a larger corporation because investors can’t easily see its standalone performance.

As you’ve just read, a spinoff happens when a parent company separates part of its business into a new, independent publicly traded company. Shareholders of the parent usually receive shares of the new company

After a spinoff, investors can value each company separately, which can unlock shareholder value and raise the combined market capitalization of both businesses.
Best of all, spinoffs are born with the proverbial “silver spoon.” Parent companies often devote great effort to ensuring the spinoffs have adequate finances and strong management.

That’s because the parent company wants their spinoff to succeed. Not only for their own prestige, but also because they want that spun-off business to make money for their own valued shareholders!

But, as noted, not every spinoff is a winner.

So, with our Spinoffs & Takeovers advisory, we focus on “top-quartile” companies.

Top quartile means they are in the top 25% of performers based on a key metric—market share, technological innovation, P/E, sales, or whatever metric is most valued in their particular industry.

According to a study in Harvard Business Review, top quartile spinoffs achieved a 75% higher market cap within two years of their split from the parent company.

Next, we look for a spinoff or “separation” strategy that reflects a clear direction and point of view.

To begin with, we favour spinoffs with a sensible, go-forward equity story…including its sales and profit outlook … annual growth trajectory … profit-margin profile … as well as the standalone financials of the business today.

We also look for favorable “asset perimeters,” meaning a clear separation of people, assets, systems, IP contracts.

That way, the spinoff split can be done cleanly, accurately, and without a hitch.

Something we also consider when evaluating a spinoff is the terms of the separation itself: how the split will change each business … the relationship between entities post spinoff … and the divvying up of commercial agreements.

More than anything else, a well-crafted separation helps both companies focus on what they do best.

The existence of a clear and robust separation thesis is consistently the single-biggest difference between top-quartile and bottom-quartile separations.

For instance, Flex Ltd. owned a 51.5% stake in Nextracker—a solar business entirely unrelated to Flex’s other operations focused on advanced design and manufacturing for original equipment manufacturers.

The thinking was that splitting up Flex and Nextracker would simplify things for investors, in turn lifting the share price for both firms.

Sure enough, it worked, with Flex’s share price skyrocketing a whopping 191% within two years of its split from Nextracker in January 2024.

The gains for Nextracker—renamed Nextpower—were also impressive: the share price more than doubled, gaining 107.1% over that same period.

Not only can the spinoff boost the market cap of both the parent and the offspring….

But often the new entity formed by the spinoff gains so much value that it becomes an extremely attractive takeover target.

A corporate “takeover” is when a company gains control of another company, usually by buying a majority or even all of its shares.

Buying an existing company can accelerate growth much faster than developing new technologies through R&D, building new products, setting up new factories, entering new markets, or establishing new brands.

A study published in the Journal of Corporate Finance found that with the presentation of a takeover announcement, the share price of the targeted company rises an average of 30%.

As for the acquiring company, if the market believes the takeover will improve profits, the buyer’s stock price may also rise over time.

When that happens, our subscribers make money in a profit “triple play”:

…The stock of the parent company rises.

…The stock of the new company rises.

…And then the share price of one—or both—of the resulting companies rises even higher based on the strength of its takeover appeal.

That happened in 2025 with Johnson & Johnson’s spinoff of Kenvue, with the new company attracting a takeover bid from Kimberly-Clark Corporation. Shares of Kenvue jumped 20%.

It happened again when Baxter International spun off Baxalta Inc. Shares in the new company gained 30% in just one year, helped along by strong takeover interest. Biotech company Shire plc tendered the winning bid.

As we developed our expertise in picking spinoff winners, we quickly saw that we could help our Spinoffs & Takeovers subscribers double or even triple their gains…

…by accurately forecasting which of these spinoff ventures would be the most attractive takeover targets.

And so, after a full year of research and development, and thorough testing, we perfected our 12-point TAKEOVER TARGETING SYSTEM.

It enables us to identify, with uncanny accuracy, which spinoff companies—and their former parents—are most likely to be targeted for a potential takeover.

And it works like gangbusters….

For instance, in October 2023, the old Kellogg Company split into two independent firms: WK Kellogg and Kellanova.

Investors received one WK Kellogg share for every four Kellogg shares they held.

(The former parent Kellogg then changed its name to Kellanova.)

We recommended spinoff stock Kellanova as a buy in May 2024 at $56 a share.

Within a year, privately held Mars, Incorporated moved to acquire Kellanova in a deal valued at $35.9 billion, or $83.50 per share.

That takeover resulted in a 49% gain for Kellanova in just 3 months. Equivalent to an annualized gain of 196%.

You see, our field-proven TAKEOVER TARGET RATING ranks potential takeover targets according to 12 factors used by potential buyers to evaluate the merits of any takeover play.

In a nutshell, our Takeover Target Rating System has been developed to home in on companies that…

…operate in a consolidating industry.

…have good management with deep industry expertise.

…profit margins lower than industry norms, so the corporate buyer can cut cost and improve profits to boost stock price.

…low debt with hidden assets.

…and several other key factors!

When enough of these criteria align, the conditions are right for a buyer to step in with a premium takeover offer—one that, more often than not, hands investors a big cheque.

As an article in Forbes notes: “Spinoffs can also be very appealing targets for acquisition, and they often fetch high prices.”

Here are more factors that make for attractive spinoffs—and takeover targets:
Low price-to-earnings and price-to-book ratios—signs of possibly cheap or undervalued investments.

A low price-to-book-value ratio—another sign that a stock may be cheap in relation to competing stocks on the market.

High dividend yield—the stock’s annual dividend divided by its share price. A high dividend yield could indicate a cheap stock that’s set to rise.

With our proprietary Takeover Target Rating system, there’s even more icing on the cake:

Investors using our rating system can leverage it for handsome gains beyond spinoff stocks.

A nice “bonus” of your a subscription to Spinoffs & Takeovers is that takeovers have historically made attractive profits—even when the takeover target was NOT a spinoff.

For instance….

• T-Mobile (TMUS) acquired Sprint on April 1, 2020. At that time, its share price was $85.05. In December of that year, the share price went up to $134.85. And kept steadily rising, reaching $257 on September 4, 2025, for a 202% gain.
  
• Google (GOOG) acquired YouTube in September 2006 when it was traded at $9.49. From there, its price crept up to $20.50 in May 2013, a gain of 116%. And it’s now at $329 for a whopping 3,367% return.
  
• Inari Medical Inc. was taken over in January 2025 at $80, for a 50.2% gain on the price we first recommended it at.
  
• We recommended G Mining as a takeover target in September 2024 at $9.65. It went to $27.05—for a gain of 180.3% in just one year!

Pat McKeogh is the editor and publisher of Spinoffs and Takeovers and 4 additional investment advisories—including, TSI Dividend Advisor, Power Growth Investor, The Successful Investor, and Canadian Wealth Advisor,

A professional investment analyst for more than three decades, Pat has developed a stock selection technique that has been proven uncannily reliable in both bull and bear markets. He focuses on stocks that provide exceptional quality but whose hidden value is often overlooked.

Pat’s system puts an emphasis on safety, yet generates growing and often spectacular gains for his subscribers. Many savvy investors consider it the most powerful stock-picking method ever created.

A one-year subscription to Spinoffs & Takeovers brings you 12 monthly issues with new stock recommendations in every issue, instant access to all current and past recommendations, and online access to our password-protected, members-only library of special investor reports.

In addition to your 12 monthly issues and free report library, you also get 5 weekly hotlines. So, you immediately get hot new stock recommendations the instant Pat makes them-- as well as timely updates on whether to buy, hold, or sell our other recommended stocks—between monthly issues.
You also get a free subscription to our TSI Wealth Daily newsletter—and as noted, access to our password-protected website, where you can now claim 3 of our latest TSI Premium Investing Reports—including:

Activist investors are multimillionaires—or more often, billionaires—who buy an oversize position in a stock that gives them a considerable say in how the company is run.
They exercise this control to improve the company’s performance, generating outsize gains for themselves and other shareholders who come along for the ride.
For example, activist investor Nelson Peltz has a long history of pressuring large firms to boost shareholder value by spinning off business units into separate entities and cutting costs.

A recent example is GE…..

GE spun off two of its business units into two separate companies. The first, GE Healthcare, makes MRIs, ultrasound scanners, and X-ray machines. GE spun off this health care business in January 2023—and today GE Healthcare is up 56.0%.

The second, GE Verona, builds turbines for power plants. Since its spin-off in April 2024, Verona has gained a whopping 378.1%, nearly quadrupling its share price.

Plus, after spinning off these disparate businesses, GE itself is up a spectacular 476.6%—rising in price almost fivefold!.

At Spinoffs and Takeovers, we find that many of our spinoff stocks have hidden high-value assets that make them ripe for a takeover.
In this report, we show you the dozen characteristics of the best takeover stocks of the day—and also share our research recommendations on 5 stock takeovers you should jump on now.

As noted earlier, both our own extensive experience as well as academic studies show that the parent company and also the spinoff generally do better than comparable companies for at least several years after the spinoff takes place.
In this report, you’ll discover the secrets behind some of our successes, including Arconic…Alcoa…Yum Brands…Gen Digital…FirstService…Colliers…BHP Group…Agilent…GE…and many others.

For example, when Hewlett-Packard Co. split into two firms, HP Enterprises gained over 80% while HP Inc. doubled. For every share they held in the old HP, shareholders received one share in each of the new companies,

And as already noted, you also gain access to our full library of additional Special Reports including How to Find the Best Growth Stocks, 7 Winning Strategies for Dividend Investors, and Spinoff Stock Investigator: All You Need to Know About Reaping the Rewards of Spinoffs.

Your investment for 12 months of Spinoffs & Takeovers—and all hotlines and bonus reports—is $797.00 a year. Only $2.18 a day. Less than you pay for your morning cup of coffee.

And the profits from just your very first Spinoffs & Takeovers trade can more than pay for your entire subscription fee. After that, each winning spinoff and takeover play is pure profit in your pocket!

Plus, your satisfaction is guaranteed: If you ever decide for any reason…or for no reason at all….that Spinoffs & Takeovers is not for you, you may cancel at any time for a refund on the used portion of your service.

Listen: most of your friends and neighbours have never profited from, or even made, a single spinoff trade.

Now, as a Spinoffs & Takeovers subscriber, you’ll be banking stock market profits that they wish they could be making. And unless you tell them, they’ll never know how you did it!

So, what are you waiting for? Our subscribers are already sitting on handsome spinoff and takeover gains—including 49% on Kellanova … 50.2% on Inari Medical … 64.6% on 3M and Solventum … 162.5% on Fording Canadian Coal … 180.3% on G Mining … 248.8% on Carrier … 378.1% on GE Verona … and 965.5% on Howmet and Arcadia.

Why not grab your share of the gains on our next batch of Spinoffs & Takeovers winners?

To get started boosting your stock market earnings … and your bank account … with our select spinoff and takeover trades, just click the button below now. You will be glad you did.

3 easy ways to subscriber to Spinoffs & Takeovers today

1—Click the button above now.
2—PHONE: toll-free 1 888-292-0296
3—Email: service@tsinetwork.ca

Yours for profitable investing,

Pat McKeough
Founder, Editor and Publisher
Spinoffs & Takeovers