canadian

We’ve long believed in the power of spinoffs to lift value for investors. Indeed, it’s why we were excited by the possibility that Archer Daniels would set up its Ethanol operations as a separate company and then hand investors shares in the new company. Now, however, the agri-giant has decided to sell that fuel business instead....

VERINT SYSTEMS INC. $589 is a spinoff buy. The software maker (Nasdaq symbol VRNT; Manufacturing & Industry Sector; Shares outstanding: 66.8 million; Market cap: $3.9 billion; No dividend paid; Takeover Target Rating: Medium; www.verint.com) plans to split the company into two separate, publicly traded businesses in early 2021.


The customer engagement business will have almost $1 billion in sales while its cyber intelligence business will have sales of about $500 million....

As we often remind investors, spinoffs are one of the best ways for companies to enhance investor value. Here are two stocks set to benefit from setting up smaller operations as separate firms.


IAC/INTERACTIVE CORP. $272 is a buy. The company (Nasdaq symbol IAC; Manufacturing & Industry Sector; Shares outstanding: 84.6 million; Market cap: $23.0 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) owns several online businesses, including U.S....

Long before 2020—indeed, for several decades—we’ve advised Canadian investors to spread their holdings out geographically between Canadian and U.S. stocks. Our view is that virtually all Canadian investors should have, say, 20% to 30% of their portfolios in U.S. stocks, with the remainder primarily in Canadian stocks....

Our approach to investing has a lot in common with activist investment firms. Like us, they’re always on the look out for companies with hidden assets that can be used to increase investor value. We see particularly strong value in a company’s ability to generate gains for its investors by spinning off some of its assets.


Below you’ll find two examples of well-known stocks that have attracted the attention of activist investors....

To unlock value for investors, on November 1, 2016, the old Alcoa Inc. split into two separate companies—Arconic Inc. (focused on manufactured aluminium products) and spinoff Alcoa Corp. (focused on bulk aluminum). For every three of the old shares investors held, they received three shares in Arconic and one in Alcoa.


Since the split, investors’ shares have gained an impressive 53%....

In addition to Danaher—our top spinoff pick for 2020—this month we highlight several other spinoff opportunities ready to deliver your portfolio enviable returns.


They include aluminum products maker Arconic, which now plans to break itself into two separate firms....

When selecting your #1 spinoff stock for 2020, we considered all recent spinoffs. But, we also considered the firms that did the actual spinning off. As a TSI subscriber, you already know the power of spinoffs to hand you gains that far exceed those of comparable stocks....

A: Canadian Natural Resources, $40.63, symbol CNQ on Toronto (Shares outstanding: 1.2 billion; Market cap: $49.0 billion; www.cnrl.com), operates in Western Canada, where its 100%-owned Horizon Oil Sands Project is located; the North Sea; and off the coast of West Africa....

A: Tourmaline Oil, $14.41, symbol TOU on Toronto (Shares outstanding: 272.1 million; Market cap: $4.0 billion; www.tourmalineoil.com), is a Canadian oil and natural gas exploration, development, and production company with properties concentrated in central Alberta and northeast B.C.

In the three months ended September 30, 2019, Tourmaline’s daily output averaged 289,578 barrels of oil equivalent (81% gas and 19% oil), up 13.9% from 254,185 a year earlier....