Becton is your #1 Spinoff Buy in 2022

We have selected Becton Dickinson as your #1 Spinoff Buy for 2022.
The medical device maker now plans to set up its diabetes-products business as a separate, publicly listed company. The split should unlock some of Becton’s holding company discount and let it focus on its… Read More

These updates help direct your investing

HP INC. $15 is a hold. The company (New York symbol HPQ; Manufacturing sector; Shares outstanding: 1.4 billion; Market cap: $21.0 billion; Dividend yield 4.5%; Takeover Target Rating: Medium; took its current form on November 1, 2015, when the old Hewlett-Packard Co. split into two firms—HP Inc. (which… Read More

‘Carveout’ sets investors up for higher gains

Foodmaker Post Holdings recently initiated a “carve-out,” using an IPO to sell a portion of its active nutrition business, BellRing Brands. That now pure-play firm makes protein bars, shakes and nutritional supplements.
Post used the proceeds from the sale to pay down its debt and strengthen… Read More

COVID-19 slows move to unlock value

The stock market turmoil caused by COVID-19 will likely prompt many companies to postpone their upcoming spinoffs or strategic sales. Even so, when business conditions improve, we expect Vonage and Archer Daniels to follow through with their own plans to add investor value.

Sony sets the stage for your gains

SONY CORP. ADRs $62 is still a hold. The Japanese conglomerate (New York symbol SNE; Manufacturing sector; ADRs outstanding: 1.3 billion; Market cap: $80.6 billion; Dividend yield: 0.6%; Takeover Target Rating: Lowest; has created a new subsidiary called Sony Electronics Corporation to hold three of its businesses—Imaging Products… Read More

Activists use pandemic to spur change

Sharp share-price drops due to the coronavirus outbreak will likely encourage activist investors to raise their stake in—and influence on—these three firms (including Sony—see box). However, for reasons outlined below, we advise you to stay on the sidelines, at least for now.

Leidos continues to spur your returns

We first recommended Leidos to you as buy in our December 2017 issue at $62; your shares then rose to $125 in February 2020 before the coronavirus outbreak pulled down the market. Even so, Leidos is still up an impressive 50% since our initial 2017… Read More

Four ways spinoffs reward you

Spinoffs offer flexibility. Spinning off unwanted assets lets the parent company’s managers focus on that part of the business they want to retain. Usually they hold on to operations best suited to their talents.
Spun-off shares often slump when they begin trading. Many investors routinely dump stock they… Read More