spin off

You Can See Our Spinoff Stock Portfolio For April 2025 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....

Cooking equipment maker Middleby is good example of how an activist can unlock hidden value for shareholders.


The stock has moved mostly sideways over the past 10 years, but it jumped 15% in early 2025 after the company became the target of an activist investor....

Following a long series of acquisitions, WELL Health is now the largest private-sector operator of outpatient medical clinics in Canada. Despite acquisitional risk, the stock is less volatile than it might seem as the company gets most of its revenue from Canada’s healthcare sector, which is government-backed and recession resilient....

VERIZON COMMUNICATIONS INC., $43.57, New York symbol VZ, remains a buy.

The telecom provider is the second-largest wireless carrier in the U.S. after AT&T Inc (New York symbol T). It also sells traditional telephone lines, high-speed Internet and TV services.

The stock fell 6% this week after the company said it expects to sign fewer new cellphone subscribers to long-term contracts in the first quarter of 2025 compared to 2024.

That’s because its competitors are aggressively discounting their plans as customers delay buying new phones due to inflation and the current economic uncertainty....

FEDEX CORP. $256 is a buy. The package delivery firm (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 240.9 million; Market cap: $61.7 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.2%; TSINetwork Rating: Average; www.fedex.com) plans to spin off FedEx Freight as a separate company....

These three legacy technologies continue to invest heavily in new artificial intelligence products and services. That should drive their earnings higher in the next few years. For now, we feel IBM currently offers investors a better combination of AI growth and value than do Apple and Intel.


APPLE INC....

DUTCH BROS INC., $76.10, symbol BROS on New York, is an Oregon-based coffee chain with 982 locations in 18 states. Some 670 of those locations are company-owned; the rest are franchised outlets.

The stock surged this week after reporting its latest results.

Brothers Travis and Dane Boersma quit dairy farming in 1992 to set up a single espresso pushcart, with a stereo, by the railroad tracks in Grants Pass, Oregon....

You Can See Our Spinoff Stock Portfolio For March 2025 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....

We pay close attention to activist investors, as they tend to target undervalued companies that could boost their value with asset sales or spinoffs. However, we see better opportunities than these three activist targets (including box).


UBER TECHNOLOGIES INC....

After many years of expanding through acquisitions—20 purchases since 2020—medical device maker Becton Dickinson is now narrowing its focus through spinoffs.


In April 2022, the company spun off its Diabetes Care business as embecta (see page 19)....