spin off
Use a spinoff strategy to target investments that are often highly undervalued and come with lot of portfolio-building power
Introduction
Successful Investors always give dividend stocks the respect they deserve and most view them as the foundation of a sound and profitable investment portfolio.
But finding the right dividend payers can be challenging for new investors as well as experienced ones....
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 and Solutions, Home Entertainment and Voice, and Mobile Communication.
The reorganization seems to be in response to reports that activist investor Daniel Loeb is taking advantage of Sony’s weaker stock price during the COVID-19 outbreak to increase his stake in the company.
At last report, he held about 2% of Sony, and still wants the company to separate its entertainment businesses (including Columbia Studios and Sony Music) from its electronic-manufacturing operations....
The reorganization seems to be in response to reports that activist investor Daniel Loeb is taking advantage of Sony’s weaker stock price during the COVID-19 outbreak to increase his stake in the company.
At last report, he held about 2% of Sony, and still wants the company to separate its entertainment businesses (including Columbia Studios and Sony Music) from its electronic-manufacturing operations....
Note--this is part of a continuing Inner Circle Spotlight Report: The Successful Investor Guide to Bear Market Investing
Like a lot of beginning investors, I took an early interest in “market lore”—rules for making money in the stock market. These rules aim to tell you how to spot good stocks to buy, good times to buy or sell them, how much to pay, etc....
Like a lot of beginning investors, I took an early interest in “market lore”—rules for making money in the stock market. These rules aim to tell you how to spot good stocks to buy, good times to buy or sell them, how much to pay, etc....
In March 2019, activist investment firm Sachem Head Capital Management announced that it had acquired 8.9% of Eagle Materials. It now owns around 7% of the company.
Sachem originally pushed the company to sell its fracking sands business, which has struggled in recent years as oil producers opt instead to use brown sand from suppliers close to their wells....
Sachem originally pushed the company to sell its fracking sands business, which has struggled in recent years as oil producers opt instead to use brown sand from suppliers close to their wells....
It’s a good idea for you to keep an eye on activist investors, as they often look for the same hidden assets we do. When they find those assets, activists tend to zero in on the undervalued company and pressure it to spin off or sell parts of its operations to add value for all investors.
For example, an activist has helped spur AT&T to cut its debt and buy back shares....
For example, an activist has helped spur AT&T to cut its debt and buy back shares....
Historically, we have recommended few pharmaceutical stocks for our readers’ portfolios. That’s because those companies must continually invest large sums to develop new drugs as their older products lose their patent protection. Even then, there’s no guarantee those new drugs will repeat past successes.
However, Merck’s plan to combine some of its smaller businesses and then spin them off as one company helps offset some of that risk.
While the split gives investors a stake in the new company, it also lets the remaining firm focus on its most-promising drugs while lowering its costs....
However, Merck’s plan to combine some of its smaller businesses and then spin them off as one company helps offset some of that risk.
While the split gives investors a stake in the new company, it also lets the remaining firm focus on its most-promising drugs while lowering its costs....
The human and economic damage from Covid-19 so far is minor, compared to what may happen in the coming weeks and months. The stock-market drop to date partly reflects investor guesswork on that future damage may be. Investors are taking their cue from published predictions about the great damage still to come....
Special Market Report: Coronavirus
Today’s Inner Circle Q&A features a special report from Pat on the current state of the stock market in light of the coronavirus, and its impact on your investments.
Please read on for Pat’s thoughtful and practical views on what investors should consider in times like this.
In a sudden and deep stock-market drop like the one of the past few weeks, it’s all too easy to respond impulsively or go to extremes....
Successful investors, like successful businesses, need to keep an open mind about the way they do things. Neither one can afford to keep doing something just because “we’ve always done it that way.” That applies to investing basics such as bonds.
Many casual investors, financial journalists and brokers take it for granted that owning some bonds is a good thing....
Many casual investors, financial journalists and brokers take it for granted that owning some bonds is a good thing....