‘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.
VONAGE HOLDINGS CORP… Read More

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; www.sony.net) 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.
OCCIDENTAL PETROLEUM CORP. $14… Read More

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

See beyond this market

We think today’s bear market has done as much damage as it is likely to do. In fact, the market has now moved back up enough that investors worry about whether to buy now or to “wait for a dip” when “things settle down.”
My view… Read More

You’ll profit from Pfizer’s new focus

Under a new long-term strategy, Pfizer is concentrating on what it does best: developing new patented drugs that generate strong returns for its shareholders.
As part of that plan, the company is merging its over-the-counter and generic drugs businesses with those of other pharmaceutical firms to… Read More

Resist any urge to sell top picks

As I’ve said since mid-March, I suspect the bulk of the damage to the stock market may already be behind us. Obviously, I could be wrong. I’ll explain why and say more over the next few weeks in our newsletters and weekly Hotlines.
Meanwhile, I advise… Read More

Two of these picks just raised your dividends

GREAT-WEST LIFECO INC. $24 remains a hold. The company (Toronto symbol GWO; Conservative Growth Payer Portfolio, Finance sector; shares outstanding: 928.9 million; Market cap: $22.3 billion; Dividend yield: 7.3%; Dividend Sustainability Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial. It also offers mutual funds and… Read More