spin off
Our first question this week comes from a member who wonders about the future of travel-booking giant Expedia Group. The stock comes with an interesting background.
The company was founded by Microsoft in 1995. In 1999, Microsoft handed Expedia out to its own shareholders as a spinoff....
The company was founded by Microsoft in 1995. In 1999, Microsoft handed Expedia out to its own shareholders as a spinoff....
ENGHOUSE SYSTEMS LTD., $38.42, symbol ENGH on Toronto, is a software and services provider.
The company operates through two business groups: Interaction Management (54% of total revenue) sells software for managing customer interactions; and Asset Management (46% of revenue) offers technology solutions for network operators and software solutions for transit and transportation operators.
On May 17, 2023, Enghouse announced it had entered into an asset purchase agreement with Lifesize Inc., a provider of video conferencing and contact center solutions....
The company operates through two business groups: Interaction Management (54% of total revenue) sells software for managing customer interactions; and Asset Management (46% of revenue) offers technology solutions for network operators and software solutions for transit and transportation operators.
On May 17, 2023, Enghouse announced it had entered into an asset purchase agreement with Lifesize Inc., a provider of video conferencing and contact center solutions....
EMERA INC., $56.38, Toronto symbol EMA, is a buy.
The company owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns 100% of Tampa Electric, which provides electricity to more than 765,000 customers. Its other interests include several power plants and natural gas pipelines in the U.S....
The company owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns 100% of Tampa Electric, which provides electricity to more than 765,000 customers. Its other interests include several power plants and natural gas pipelines in the U.S....
3M COMPANY $97 (www.3m.com) remains a buy for long-term gains. The company makes over 60,000 items, including air purifiers, adhesives, bandages and components for medical devices....
BAXTER INTERNATIONAL INC. $42 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 505.9 million; Market cap: $21.2 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.7%; TSINetwork Rating: Average; www.baxter.com) has agreed to sell its BioPharma division to private-equity firms Advent International and Warburg Pincus for $4.25 billion (or $3.4 billion after taxes)....
GENERAL ELECTRIC CO. $101 remains a hold. The conglomerate (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $111.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.3%; TSINetwork Rating: Average; www.ge.com) recently spun off its healthcare products business (X-ray equipment, MRI and ultrasound scanners) as GE HealthCare Technologies Inc (Nasdaq symbol GEHC)....
EMERA INC., $57.00, Toronto symbol EMA, is a buy.
The company owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns 100% of Tampa Electric, which provides electricity to more than 765,000 customers. Its other interests include several power plants and natural gas pipelines in the U.S....
The company owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns 100% of Tampa Electric, which provides electricity to more than 765,000 customers. Its other interests include several power plants and natural gas pipelines in the U.S....
You Can See Our Spinoff Stock Portfolio For June 2023 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....
ARCONIC CORP. $29 is a hold. This company (New York symbol ARNC; Manufacturing & Industry sector; Shares outstanding: 105.8 million; Market cap: $3.1 billion; No dividend paid; Takeover Target Rating: Highest; www.arconic.com) makes rolled aluminum products.
On April 1, 2020, the old Arconic Inc....
On April 1, 2020, the old Arconic Inc....
A key benefit of spinoffs is the creation of pure-play firms that focus on a narrow market. Here are two medical-related spinoff situations that should benefit their investors for years to come.
LABORATORY CORPORATION OF AMERICA, or LABCORP, $217 is a spinoff buy. The company (New York symbol LH; Manufacturing sector; Shares outstanding: 90.4 million; Market cap: $19.6 billion; Dividend yield: 1.3%; Takeover Target Rating: Medium; www.labcorp.com) provides clinical laboratory services from locations throughout North America....
LABORATORY CORPORATION OF AMERICA, or LABCORP, $217 is a spinoff buy. The company (New York symbol LH; Manufacturing sector; Shares outstanding: 90.4 million; Market cap: $19.6 billion; Dividend yield: 1.3%; Takeover Target Rating: Medium; www.labcorp.com) provides clinical laboratory services from locations throughout North America....