spinoffs
A spinoff takes place when a company decides to get rid of a portion of its asset base, possibly because it wants to focus its activities elsewhere, but is unable to sell the assets for a price that it feels reflects their value. Instead, the parent company sets the assets up as a separate company, then hands out shares in that publicly listed firm to its current investors.
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CANADIAN SOLAR INC., $26.25, symbol CSIQ on Nasdaq, is one of the world’s largest manufacturers of solar photovoltaic modules and solar energy and battery storage solutions. Founded in 2001, it went public in 2006, selling shares at $15 each.
On August 17, 2023, the Ontario-based company announced it would deliver 1,200 megawatt hours of energy storage solutions to its Papago Storage project in Arizona....
On August 17, 2023, the Ontario-based company announced it would deliver 1,200 megawatt hours of energy storage solutions to its Papago Storage project in Arizona....
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....
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....
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....
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....
TEGNA INC....