spinoffs

Top AI stocks to invest in for long-term profit and least amount of risk.
We’ve long told our readers that spinoffs are a great way for companies to unlock hidden value for their shareholders. A recent example is General Electric, which is breaking up into three smaller firms. GE is now up 35% since it announced that plan in November 2021; its new spinoff GE HealthCare has gained 20%....

You Can See Our Spinoff Stock Portfolio For September 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....

You Can See Our Spinoff Stock Portfolio For August 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....
One of the main ways investors benefit from spinoffs is that they tend to create firms that focus on a narrow market. That makes them easier to evaluate compared to competing investments.


A good example is Labcorp, which recently spun off its clinical drug testing business as Fortrea....
As stock markets rebound from a disappointing 2022, more companies are turning to spinoffs to further increase value for their shareholders. Here’s our take on two upcoming spinoffs.


KELLOGG COMPANY $67 is a spinoff buy. The company (New York symbol K; Consumer sector; Shares outstanding: 342.8 million; Market cap: $23.0 billion; Divd.ield: 3.6%; Takeover Target Rating: Medium; www.kelloggcompany.com) will spin off its North American (U.S., Canadian, and Caribbean) cereal business in the fourth quarter of 2023....
Alcon shares let you benefit from the rapidly growing contact lenses and cataract surgery markets. The company’s technological leadership is also set to pay off for investors.

Alcon is a spinoff, with Novartis setting it up as a separate company in early 2019....

You Can See Our Spinoff Stock Portfolio for July 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....
A key benefit for spinoffs is that the resulting companies often become attractive takeover targets for larger firms. That’s what happened to media firm Gannett, which split its newspaper and TV broadcasting operations in 2015. While one of those recent takeover deals has been cancelled, we still see both of these firms as worthwhile holds.


TEGNA INC....
Swiss pharmaceutical giant Novartis spun off Alcon in 2019. As we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of the market’s rise and fall.


The stock is already up over 99% from its March 2020 low, but we think it can go much higher....