spin off
NVIDIA CORP., $1,064.69, Nasdaq symbol NVDA, remains a buy, but only for highly aggressive investors.
The company is a leading designer of 3D-capable video chips; they make video games run more smoothly and appear more lifelike. Nvidia has also adapted its chips for other applications, including artificial intelligence (AI), datacentres and self-driving cars.
The stock rose 13% this week due to increasingly strong demand from datacentre operators for chips that power AI applications such as the popular ChatGPT online chatbot/search engine.
In its fiscal 2025 first quarter, ended April 28, 2024, Nvidia’s revenue soared 262.1%, to $26.04 billion from $7.19 billion a year earlier....
The company is a leading designer of 3D-capable video chips; they make video games run more smoothly and appear more lifelike. Nvidia has also adapted its chips for other applications, including artificial intelligence (AI), datacentres and self-driving cars.
The stock rose 13% this week due to increasingly strong demand from datacentre operators for chips that power AI applications such as the popular ChatGPT online chatbot/search engine.
In its fiscal 2025 first quarter, ended April 28, 2024, Nvidia’s revenue soared 262.1%, to $26.04 billion from $7.19 billion a year earlier....
3M COMPANY, $105.26, New York symbol MMM, is still a buy for long-term gains.
The company makes over 55,000 consumer and industrial goods. Its main brands include Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation.
On April 1, 2024, 3M completed its plan to spin off its Health Care division as an independent firm called SOLVENTUM CORP., $62.38, New York symbol SOLV, which is a hold. That business makes products to treat and prevent infection in wounds, dental filling materials, and filtration and purification products.
Shareholders received one share of Solventum for every four shares they held....
The company makes over 55,000 consumer and industrial goods. Its main brands include Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation.
On April 1, 2024, 3M completed its plan to spin off its Health Care division as an independent firm called SOLVENTUM CORP., $62.38, New York symbol SOLV, which is a hold. That business makes products to treat and prevent infection in wounds, dental filling materials, and filtration and purification products.
Shareholders received one share of Solventum for every four shares they held....
You Can See Our Spinoff Stock Portfolio For June 2024 Here.
Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.
2) Spinoffs involve a lot of work and legal fees....
Diversified manufacturing firm 3M completed its plan to spin off its Health Care division as an independent firm, called Solventum, on April 1, 2024. Shareholders received one share of Solventum for every four shares they held. 3M still owns 19.9% of Solventum, but plans to sell those shares over the next five years.
The spinoff will let both firms better focus on their main businesses....
The spinoff will let both firms better focus on their main businesses....
BHP GROUP LTD. (ADR) $59 is a buy. This company (New York symbol BHP; Resources sector; ADRs outstanding: 2.6 billion; Market cap: $153.4 billion; Dividend yield: 5.2%; Takeover Target Rating: Medium; www.bhp.com) is one of the world’s largest producers of iron ore, copper, nickel and coal.
BHP recently offered to acquire rival mining firm Anglo American PLC (Over-the-counter symbol AAUKF) in an all-stock merger worth $42.7 billion....
BHP recently offered to acquire rival mining firm Anglo American PLC (Over-the-counter symbol AAUKF) in an all-stock merger worth $42.7 billion....
3M yields 2.7% as it agrees to legal settlements while spinning off its Health Care division and launching a restructuring plan to cut costs.
Medical device maker Baxter will soon spin off its kidney care business as a separate firm. That should help unlock some of its value, in part because the stock market finds it easier to value “pure-play” firms that focus on a single business. Longer-term, the new Baxter should also benefit from an aging population and the shift to tele-medicine.
BAXTER INTERNATIONAL INC....
BAXTER INTERNATIONAL INC....
You Can See Our Spinoff Stock Portfolio For May 2024 Here.
Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.
2) Spinoffs involve a lot of work and legal fees....
AMERICAN ELECTRIC POWER CO. INC. $81 is a hold. Formed in 1906, this Columbus, Ohio-based company (New York symbol AEP; Utilities sector; Shares outstanding: 526.6 million; Market cap: $42.7 billion; Dividend yield: 4.4%; Takeover Target Rating: Medium; www.aep.com) generates and distributes electricity to 5.6 million customers in 11 U.S....
Most of the pipelines owned by Pembina and TC Energy operate under long-term contracts. That helps lower their risk in today’s uncertain economy. Investors in both stocks tap a high, sustainable dividend yield. That adds to their appeal and also supports their share prices.
PEMBINA PIPELINE, $48.13, is buy. The company (Toronto symbol PPL; Shares outstanding: 549.5 million; Market cap: $26.4 billion; TSINetwork Rating: Average; Dividend yield: 5.6%; www.pembina.com) is an energy transportation and midstream service provider that has served North America’s energy industry for 70 years....
PEMBINA PIPELINE, $48.13, is buy. The company (Toronto symbol PPL; Shares outstanding: 549.5 million; Market cap: $26.4 billion; TSINetwork Rating: Average; Dividend yield: 5.6%; www.pembina.com) is an energy transportation and midstream service provider that has served North America’s energy industry for 70 years....