FirstService Corp.
Toronto symbol FSV, operates in the real estate services market, providing services in the following areas: commercial real estate; residential property management; and property improvement.
WYNDHAM WORLDWIDE CORP., $81.35, symbol WYN on New York, is one of the world’s largest hospitality companies, with 7,700 franchised hotels worldwide. It also manages vacation resorts, rental properties, luxury clubs and time-shares. The company has 110,000 vacation-rental properties in 100 countries.
In the three months ended September 30, 2015, Wyndham’s revenue rose 3.3%, to $1.56 billion from $1.51 billion a year earlier.
The company continues to buy back its stock, including 2.1 million shares for $170 million in the latest quarter. That’s partly why its per-share earnings rose 6.6% before one-time items, to $1.78 from $1.67, beating the consensus estimate of $1.70.
Wyndham’s shares moved up on both the improved results and reports that at least three big Chinese companies are competing to win Beijing’s approval to bid for Starwood Hotels & Resorts Worldwide (symbol HOT on New York). Starwood controls brands like Westin, Sheraton, W Hotels and St. Regis and has more than 1,200 properties worldwide. The company now has a market cap of $13.6 billion.
Earlier this year, China’s Anbang Insurance Group paid nearly $2 billion for the Waldorf-Astoria Hotel on New York’s Park Avenue, a record price for a U.S. hotel. As well, Sunshine Insurance Group, another Chinese insurer, paid $230 million—or more than $2 million a room—for New York’s Baccarat Hotel. That was an all-time high on a per-room basis.
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In the three months ended September 30, 2015, Wyndham’s revenue rose 3.3%, to $1.56 billion from $1.51 billion a year earlier.
The company continues to buy back its stock, including 2.1 million shares for $170 million in the latest quarter. That’s partly why its per-share earnings rose 6.6% before one-time items, to $1.78 from $1.67, beating the consensus estimate of $1.70.
Wyndham’s shares moved up on both the improved results and reports that at least three big Chinese companies are competing to win Beijing’s approval to bid for Starwood Hotels & Resorts Worldwide (symbol HOT on New York). Starwood controls brands like Westin, Sheraton, W Hotels and St. Regis and has more than 1,200 properties worldwide. The company now has a market cap of $13.6 billion.
Earlier this year, China’s Anbang Insurance Group paid nearly $2 billion for the Waldorf-Astoria Hotel on New York’s Park Avenue, a record price for a U.S. hotel. As well, Sunshine Insurance Group, another Chinese insurer, paid $230 million—or more than $2 million a room—for New York’s Baccarat Hotel. That was an all-time high on a per-room basis.
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FIRSTSERVICE CORP. $43.10 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $1.6 billion; Dividend yield: 1.2%) completed the spinoff of its Colliers International subsidiary (see below) on June 2, 2015, by handing out Colliers shares to its investors. Shareholders only become liable for capital gains taxes on the transaction when they sell their FirstService or Colliers shares. Now that the spinoff is complete, FirstService is carrying on with its residential property management and property-improvement operations. In the three months ended June 30, 2015, First- Service’s revenue gained 11.7%, to $326.3 million from $292.2 million a year earlier (all figures except share price and market cap in U.S. dollars). If you set aside one-time items, earnings per share jumped 37.9%, to $0.40 from $0.29. These results exclude Colliers. The spinoff adds to FirstService’s appeal. In our experience, and in most academic studies of the subject, both the parent and spinoff generally do better than comparable firms for at least several years after they split....
COLLIERS INTERNATIONAL GROUP $54.56 (Toronto symbol CIG ; TSINetwork Rating: Extra Risk) (1-202-695-4200; www.colliers.com; Shares outstanding: 36.6 million; Market cap: $2.1 billion; Dividend yield: 0.2%) is one of the world’s top three commercial real estate firms, offering a range of services in the U.S., Canada, Europe, Australia, New Zealand, Asia and Latin America.
The company has 16,300 employees operating from 502 offices in 67 countries.
In the three months ended June 30, 2015, Colliers’ revenue rose 11.2%, to $409.8 million from $368.5 million a year earlier (all figures except share price and market cap in U.S. dollars). If you exclude one-time items, the company’s earnings gained 31.8%, to $0.58 a share from $0.44 a share. These results do not include FirstService.
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The company has 16,300 employees operating from 502 offices in 67 countries.
In the three months ended June 30, 2015, Colliers’ revenue rose 11.2%, to $409.8 million from $368.5 million a year earlier (all figures except share price and market cap in U.S. dollars). If you exclude one-time items, the company’s earnings gained 31.8%, to $0.58 a share from $0.44 a share. These results do not include FirstService.
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FIRSTSERVICE CORP. $43.10 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $1.6 billion; Dividend yield: 1.2%) completed the spinoff of its Colliers International subsidiary (see below) on June 2, 2015, by handing out Colliers shares to its investors. Shareholders only become liable for capital gains taxes on the transaction when they sell their FirstService or Colliers shares.
Now that the spinoff is complete, FirstService is carrying on with its residential property management and property-improvement operations. In the three months ended June 30, 2015, First- Service’s revenue gained 11.7%, to $326.3 million from $292.2 million a year earlier (all figures except share price and market cap in U.S. dollars). If you set aside one-time items, earnings per share jumped 37.9%, to $0.40 from $0.29. These results exclude Colliers.
The spinoff adds to FirstService’s appeal. In our experience, and in most academic studies of the subject, both the parent and spinoff generally do better than comparable firms for at least several years after they split.
...
Now that the spinoff is complete, FirstService is carrying on with its residential property management and property-improvement operations. In the three months ended June 30, 2015, First- Service’s revenue gained 11.7%, to $326.3 million from $292.2 million a year earlier (all figures except share price and market cap in U.S. dollars). If you set aside one-time items, earnings per share jumped 37.9%, to $0.40 from $0.29. These results exclude Colliers.
The spinoff adds to FirstService’s appeal. In our experience, and in most academic studies of the subject, both the parent and spinoff generally do better than comparable firms for at least several years after they split.
...
FIRSTSERVICE CORP. $42.76 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $1.5 billion; Dividend yield: 1.2%) offers residential property management and property improvement services. The company recently announced that it is acquiring Custom Property Management, a leading provider of residential property management services in West Palm Beach, Florida, and surrounding areas. FirstService didn’t reveal the deal’s terms. The transaction will add over 16,000 units to FirstService’s existing property management portfolio, which totals 7,200 buildings comprised of over 1.6 million residential units throughout North America....
INTACT FINANCIAL CORP., $92.14, symbol IFC on Toronto, has reached a tentative deal to offer insurance to drivers with the Uber ride-sharing service, under which passengers use a smartphone app to hire drivers who use their own personal vehicles. Intact won’t reveal further details until provincial insurance regulators sign off on the plan, but it did say it would offer the insurance under its two main brands: Intact Insurance and belairdirect. Uber says its drivers are covered by a commercial policy for up to $5 million worth of injuries and property damage. However, under Canadian law, commercial drivers must have their own insurance to cover claims incurred while transporting a passenger for profit....
FIRSTSERVICE CORP. $42.76 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $1.5 billion; Dividend yield: 1.2%) offers residential property management and property improvement services.
The company recently announced that it is acquiring Custom Property Management, a leading provider of residential property management services in West Palm Beach, Florida, and surrounding areas. FirstService didn’t reveal the deal’s terms.
The transaction will add over 16,000 units to FirstService’s existing property management portfolio, which totals 7,200 buildings comprised of over 1.6 million residential units throughout North America.
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The company recently announced that it is acquiring Custom Property Management, a leading provider of residential property management services in West Palm Beach, Florida, and surrounding areas. FirstService didn’t reveal the deal’s terms.
The transaction will add over 16,000 units to FirstService’s existing property management portfolio, which totals 7,200 buildings comprised of over 1.6 million residential units throughout North America.
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This is the third in our regular series of Spinoff Stock Investigator reports. It’s been a busy year for spinoff news from our stock recommendations: Hewlett-Packard expects to complete spinoffs by the end of 2015; Symantec and United Technologies have decided to accept big purchase offers for some of their businesses instead of spinning them off; and FirstService, eBay, Gannett, BHP Billiton and Baxter International have all completed their spinoffs. We hope you will continue to enjoy and profit from our Spinoff Stock Investigator....
Here are some spinoff stocks we think have gains ahead.
Hewlett-Packard Co., $29.82, symbol HPQ on New York (Shares outstanding: 1.8 billion; Market cap: $53.7 billion; www.hp.com), plans to split into two firms:
The company rejected a similar plan in 2011. However, Hewlett’s 2014 restructuring, which involved cutting jobs and simplifying product lines, has increased its profit margins and strengthened its balance sheet. That gives these new firms more flexibility to invest in new products and make acquisitions.
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Hewlett-Packard Co., $29.82, symbol HPQ on New York (Shares outstanding: 1.8 billion; Market cap: $53.7 billion; www.hp.com), plans to split into two firms:
- Hewlett-Packard Enterprise will sell computing products, like servers and analytics software, to businesses and governments. It will also offer cloud computing services and financing. Hewlett-Packard Enterprise will have annual revenue of $58.4 billion and operating profits of $6 billion. Meg Whitman, Hewlett’s current chief executive officer, will become this firm’s CEO.
- The second company, called HP Inc., will focus on the slower-growing personal computer (59% of its revenue) and printer (41%) markets. HP Inc. will have annual revenue of $57 billion and $5 billion of profits. Ms. Whitman will be its chairman.
The company rejected a similar plan in 2011. However, Hewlett’s 2014 restructuring, which involved cutting jobs and simplifying product lines, has increased its profit margins and strengthened its balance sheet. That gives these new firms more flexibility to invest in new products and make acquisitions.
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FIRSTSERVICE CORP. $30.49 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $1.1 billion; Dividend yield: 0.6%) has completed the spinoff of its Colliers International subsidiary after handing out Colliers shares to its investors. The new FirstService began trading on Tuesday, June 2, 2015, retaining its FSV stock symbol. Colliers International Group, $47.01, symbol CIG on Toronto, began trading on the same day under its new symbol. Shareholders won’t pay capital gains taxes on the transaction until they sell their FirstService or Colliers shares. Colliers is one of the world’s top three commercial real estate firms, offering a range of services in the U.S., Canada, Europe, Australia, New Zealand, Asia and Latin America. In 2014, it had $1.7 billion U.S. of revenue....