acquisition

We recommend that all investors limit aggressive stocks to just a small portion of their overall portfolios. To further cut your risk, when considering aggressive stocks, we zero in on companies with rising revenue and earnings, and manageable debt.


The three stocks we analyze below are good choices for most investors....
Royal Bank’s shares have gained 35% since the bank’s 2015 acquisition of California-based City National Bank. Thanks to that purchase, Royal is now the 7th-largest full-service wealth management firm in the U.S.


City National also gives the bank a strong platform to further expand its U.S....
A: Premium Brands Holdings Corp., $88.25, symbol PBH on Toronto (Shares outstanding: 33.4 million; Market cap: $3.0 billion; www.premiumbrandsholdings.com), took its current form on July 22, 2009, when it converted to a corporation from an income trust....



Toromont
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TOROMONT INDUSTRIES LTD....
Cost cuts, operational upgrades and a profitable Canadian acquisition helped industrial maintenance and repair specialist Lawson Products recover from a severe downturn.
AMEREN CORP. $62 (New York symbol AEE; Income Portfolio, Utilities sector; Shares outstanding: 242.6 million; Market cap: $15.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ameren.com) provides power and natural gas to 3.3 million clients in Illinois and Missouri.


Thanks to warmer-than-normal weather in Missouri, which spurred demand for air conditioning, Ameren’s earnings in the three months ended June 30, 2018, jumped 22.8%, to $0.97 from $0.79 a year earlier....
PEPSICO INC. $112 (Nasdaq symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares o/s: 1.4 billion; Market cap: $156.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.pepsico.com) will now buy SodaStream International Inc....

These three tech leaders continue to hit new highs. Those gains are mainly due to high research spending, which helps them develop new products and fuel their future growth. While that spending hurts their current earnings, recent acquisitions further enhance their long-term prospects....
We generally recommend investors avoid pharmaceutical companies due to the huge costs and risks of developing new drugs.


However, Pfizer is an exception. We feel its large size makes it less dependent on the success or failure of any single drug....
Growth by acquisition is risky. Newly purchased companies may develop unforeseen problems. Acquisitions in unrelated areas is especially risky. That’s because the acquiring firm’s managers then have to divide their attention among a number of unfamiliar companies and industries.


Growth by acquisition is also inherently riskier than internal growth, since it carries an above-average chance of unpleasant surprises....