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New spinoff stocks often drift sideways for a few years until building a history of earnings and attracting analysts.


As a new spinoff from Danaher, Envista is still an attractive choice for aggressive investors. However, we’re less confident about Match Group’s short-term prospects even as parent company IAC hands out the rest of its holding in the new company to its investors.


ENVISTA HOLDINGS CORP....

ED ROBIN GOURMET BURGERS INC. $5.18 is a sell. The company (Nasdaq symbol RRGB; Consumer sector; Shares outstanding: 12.9 million; Market cap: $66.8 million; No dividend paid; Takeover Target Rating: Highest; www.redrobin.com) is a casual dining chain with 556 Red Robin restaurant locations in the U.S....

It’s a good idea for you to keep an eye on activist investors, as they often look for the same hidden assets we do. When they find those assets, activists tend to zero in on the undervalued company and pressure it to spin off or sell parts of its operations to add value for all investors.


For example, an activist has helped spur AT&T to cut its debt and buy back shares....

We normally advise investors to avoid new stock issues as they typically come to market when it’s a good time for the company or its insiders to sell. That may not be a good time for you to buy. However, we’re making an exception for Reynolds Consumer Products....

In a sudden and deep stock-market drop like the one of the past few weeks, it’s all too easy to respond impulsively or go to extremes. You may feel a temptation to sell all your stocks and “wait for things to settle down” before going back in the market. Or you may feel an urge to “average down”: buy more of your biggest losers....

MCKESSON CORP. $136 is a buy for spinoff gains. The company (New York symbol MCK; Consumer sector; Shares outstanding: 177.1 million; Market cap: $24.1 billion; Dividend yield 1.2%; Takeover Target Rating: Medium; www.mckesson.com) is the largest wholesale drug distributor in the U.S....

Historically, we have recommended few pharmaceutical stocks for our readers’ portfolios. That’s because those companies must continually invest large sums to develop new drugs as their older products lose their patent protection. Even then, there’s no guarantee those new drugs will repeat past successes.


However, Merck’s plan to combine some of its smaller businesses and then spin them off as one company helps offset some of that risk.


While the split gives investors a stake in the new company, it also lets the remaining firm focus on its most-promising drugs while lowering its costs....

A: The ALPS Sector Dividend Dogs ETF, $31.17, symbol SDOG on New York (Units outstanding: 34.5 million; Market cap: $1.1 billion; www.alpssectordividenddogs.com), is an ETF that applies the “Dogs of the Dow” theory on a sector-by-sector basis using the stocks in the S&P 500....

A: Verisk Analytics, $136.39, symbol VRSK on Nasdaq (Shares outstanding: 163.1 million; Market cap: $21.2 billion; www.verisk.com), offers risk-assessment services for property/casualty insurers and other businesses....

A: Cematrix Corp., $0.33, symbol CVX on the Toronto Venture Exchange (Shares outstanding: 60.4 million; Market cap: $19.9 million; www.Cematrix.com), is a Calgary-based manufacturer and installer of what it promotes as technologically advanced cellular concrete products.

Cellular concrete is an innovative construction material consisting of cement, water, a proprietary pre-formed foaming agent, and compressed air....