spin off
On February 5, 2021, Zimmer Biomet announced it would spin off its Spine and Dental businesses as a publicly traded company. The news helped push the stock up to $180 in April, but it is now down 19% from that peak. That’s due to concerns the spread of the Delta variant of COVID-19 will once again force hospitals to postpone orthopedic surgeries....
As we’ve said many times before, spinoffs are the closest thing you can find to a sure thing. Studies show that both the parent and the spinoff ultimately do better than comparable companies for a number of years, if not decades. However, investors should avoid smaller firms with little or no profits, such as the two below, that use spinoffs to spur their stock price.
BLUEBIRD BIO INC....
BLUEBIRD BIO INC....
While activist investors have a spotty record of success, it’s still worth keeping an eye on them given their focus on finding hidden value. Here are two companies now being targeted by activists. That should benefit all investors. Still, we see just one of the picks as right for your new buying.
CANADIAN NATIONAL RAILWAY CO....
CANADIAN NATIONAL RAILWAY CO....
As we often remind our readers, spinoffs are a great way for out-of-favour companies to boost shareholder value.
International Paper is key example. While the shutdown of schools due to COVID-19 hurt demand for writing and printing paper, the pandemic also increased demand for its cardboard packaging as more people began to order goods online.
The company now plans to spin off its printing paper business as a separate firm called Sylvamo....
International Paper is key example. While the shutdown of schools due to COVID-19 hurt demand for writing and printing paper, the pandemic also increased demand for its cardboard packaging as more people began to order goods online.
The company now plans to spin off its printing paper business as a separate firm called Sylvamo....
HONEYWELL INTERNATIONAL INC. $232 is a buy. The company (New York symbol HON; Manufacturing & Industry sector; Shares outstanding: 694.6 million; Market cap: $161.1 billion; Dividend yield: 1.7%; Takeover Target Rating: Medium; www.honeywell.com) aims to take advantage of the huge potential of quantum computing systems, which can process data much faster than regular computers.
Honeywell’s trapped-ion technology uses individually charged atoms (ions) to hold quantum information....
Honeywell’s trapped-ion technology uses individually charged atoms (ions) to hold quantum information....
Transportation firm XPO will soon complete the spinoff of its logistics business after stock market disruptions caused by COVID-19 initially delayed that split.
The breakup will create two pure-play firms—one focused on hauling goods on trucks, and one devoted to improving the flow of goods....
The breakup will create two pure-play firms—one focused on hauling goods on trucks, and one devoted to improving the flow of goods....
Pharmaceutical giant GlaxoSmithKline has stayed in an narrow range of $33 to $48 in the past five years as it struggled with high costs and poor acquisitions.
The company now plans to re energize its growth by spinning off its consumer business as a separate company....
The company now plans to re energize its growth by spinning off its consumer business as a separate company....
INTERNATIONAL BUSINESS MACHINES CORP. $141 is your #1 Spinoff Buy for 2021. The company (New York symbol IBM, Manufacturing & Industry sector; Shares outstanding: 892.0 million; Market cap: $125.8 billion; Dividend yield: 4.7%; Takeover Target Rating: Lowest; www.ibm.com) plans to spin off its Managed Infrastructure Services unit as a separate company called Kyndryl....
A: Zimmer Biomet Holdings Inc., $162.32, symbol ZBH on New York (Shares outstanding: 208.5 million; Market cap: $34.1 billion; www.zimmerbiomet.com), manufactures orthopedic reconstructive implants and surgical equipment for orthopedic surgeries....
IBM’s investors continue to benefit from its strong commitment to keep raising your dividend. They should also gain from its shift to cloud computing and the spinoff of a legacy business. While the company has yet to announce the details, it’s likely this new firm will also pay a dividend.
INTERNATIONAL BUSINESS MACHINES CORP....
INTERNATIONAL BUSINESS MACHINES CORP....