canadian
A: Lassonde Industries Inc. $143.93, symbol LAS.A on Toronto (Shares outstanding: 6.9 million; Market cap: $1.0 billion; www.lassonde.com), makes a wide variety of fruit and vegetable juices and other drinks at 15 plants in Canada and the U.S....
Linamar’s shares were trading as high as $80.59 a share in November 2017. They have since fallen to $39.53—a 50.9% drop in market value. That includes the 20.1% decrease since the start of 2020. Some investors worry this downward trend will continue, mainly because the company is often viewed as simply an auto-parts supplier, overly exposed to the current slump in the automotive industry....
BLOOMIN’ BRANDS INC. $23 is worth holding given the likelihood of a lucrative takeover bid. The company (Nasdaq symbol BLMN; Consumer Sector; Shares outstanding: 86.9 million; Market cap: $2.0 billion; Dividend yield 3.6%; Takeover Target Rating: Highest; www.bloominbrands.com) owns and franchises more than 1,470 restaurants in 48 states and 21 countries....
Drug wholesaler McKesson fell from its high of $241 in May 2015 to $108 in December 2018. That’s partly due to its role in the opioid crisis. However, the company has now settled many of those lawsuits, reducing risk for investors. It’s also improving the profitability of its main businesses, and its plan to let investors acquire shares in its Change Healthcare subsidiary should further boost your returns.
MCKESSON CORP....
Spinoffs are often seen as an effective way for a holding company to eliminate its “holding company discount.” That discount is usually evident in the stock price of a company that holds a variety of assets, or that invests in a number of businesses.
As well, investors tend to prefer so-called “pure play” companies—firms that focus on a single business area....
These two global leaders continue to shrink their operations. That’s good news for investors, as markets tend to prefer—and reward—companies with easy-to-understand businesses rather than those with complex conglomerate structures (see box below for more info).
UNILEVER PLC (ADR) $60 is a buy for aggressive investors. The company (New York symbol UL; Consumer sector; Shares outstanding: 2.6 billion; Market cap: $156.0 billion; Dividend yield: 3.1%; Takeover Target Rating: Lowest; www.unilever.com) is one of the world’s largest makers of branded and packaged consumer goods.
Unilever is now conducting a strategic review of its tea business to add investor value....
DAVE & BUSTER’S ENTERTAINMENT INC. $46 is okay to hold. The stock (Nasdaq symbol PLAY; Consumer sector; Shares outstanding: 38.6 million; Market cap: $1.8 billion; Dividend yield: 1.4%; Takeover Target Rating: Highest; www.daveandbusters.com) gives you a stake in 135 entertainment and dining venues in the U.S....
Generally, investors are right to welcome share buyback plans, which help to give them a bigger stake in the company, but also tend to push up the price of their shares.
However, depending on the company, there are better ways to reward shareholders....
Shipping specialist XPO Logistics has handed investors a whopping 77% gain in the past 12 months. It’s now looking to sell or spin off some of its businesses to further spur your returns. A tighter focus on its core operations would help unlock value for its investors and could also make the remaining firm an attractive takeover target....