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.
Read More
Close
These spinoffs have surged since becoming independent firms. Their recent acquisitions also position them for more gains as the economy continues to recover.
CARRIER GLOBAL CORP. $44 is a buy. This company (New York symbol CARR; Manufacturing & Industry sector; Shares outstanding: 836.3 million; Market cap: $36.8 billion; Dividend yield 1.4%; Takeover Target Rating: Medium; www.carrier.com) is a leading maker of heating, ventilation and air conditioning (HVAC) equipment.
In April 2020, Raytheon Technologies Corp....
Merck—like other big pharmaceutical makers Pfizer and Johnson & Johnson—recently spun off some of its legacy businesses. Merck’s split came in June 2021 with the creation of Organon & Co. Investors received one share in the new firm for every 10 Merck shares they held.
Since the Organon spinoff, its former parent has gained 32%, which is far better than the 6% decline for the S&P 500 Index over that same period....
Since the Organon spinoff, its former parent has gained 32%, which is far better than the 6% decline for the S&P 500 Index over that same period....
As we’ve often said, we think spinoffs are about as close as you can get to a sure thing in investing. Statistics show that after a company sets up one (or more) of its businesses as a separate publicly traded entity and “spins it off,” the shares of both the parent and the spinoff generally do better than comparable companies for a number of years, if not decades.
We were so impressed by the proven long-term benefit of spinoff investing that we launched an investment advisory around it—our Spinoffs & Takeovers newsletter.
Of course, this “spinoff effect” can take months or years to show itself....
We were so impressed by the proven long-term benefit of spinoff investing that we launched an investment advisory around it—our Spinoffs & Takeovers newsletter.
Of course, this “spinoff effect” can take months or years to show itself....
We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. At the same time, over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think AbbVie—itself a spinoff—has further gains ahead for investors. We recommend this stock as a Power Buy.
ABBVIE INC., $143.13, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $255.7 billion; Dividend yield: 3.9%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies.
Since its spinoff from Abbott Laboratories, AbbVie has depended heavily on its Humira drug to drive both its sales and earnings....
ABBVIE INC., $143.13, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $255.7 billion; Dividend yield: 3.9%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies.
Since its spinoff from Abbott Laboratories, AbbVie has depended heavily on its Humira drug to drive both its sales and earnings....
Danaher is a great example of how a company can unlock value for shareholders with spinoffs. Since 2016, the conglomerate has completed two separate spinoffs and recently announced a third.
In fact, the stock has jumped 184% in the past five years, compared to the 44% gain for the S&P 500 Index.
Meantime, Danaher continues to acquire smaller businesses....
In fact, the stock has jumped 184% in the past five years, compared to the 44% gain for the S&P 500 Index.
Meantime, Danaher continues to acquire smaller businesses....
A: Kellogg Company, $72.22, symbol K on New York, (Shares outstanding: 340.1 million; Market cap: $24.2 billion; www.kelloggs.com), is a major maker of food products in North America and the rest of the world.
The company’s principal products are snacks, such as crackers, savory snacks, toaster pastries, cereal bars, granola bars and bites; and convenience foods, such as, ready-to-eat cereals, frozen waffles, veggie foods and noodles.
These products are manufactured in 21 countries and marketed in more than 180 countries....
The company’s principal products are snacks, such as crackers, savory snacks, toaster pastries, cereal bars, granola bars and bites; and convenience foods, such as, ready-to-eat cereals, frozen waffles, veggie foods and noodles.
These products are manufactured in 21 countries and marketed in more than 180 countries....
These recent spinoffs have thrived since becoming independent firms. While rising costs and unfavourable currency rates are squeezing their margins, we expect these market leaders to rebound quickly as the economy recovers.
CARRIER GLOBAL CORP....
CARRIER GLOBAL CORP....
TAMARACK VALLEY ENERGY LTD., $3.54, symbol TVE on Toronto, is an oil and gas exploration and production firm in Western Canada. The company focuses on Alberta and Saskatchewan, and its output is 74% oil and 26% gas.
On September 12, 2022, the company announced it would pay $1.4 billion in cash and stock to acquire Deltastream Energy Corp....
On September 12, 2022, the company announced it would pay $1.4 billion in cash and stock to acquire Deltastream Energy Corp....
Medical device maker Becton Dickinson completed the spinoff of its diabetes-products business (embecta) in April 2022. Investors received one share of embecta for every five common shares of Becton they held.
So far, the new firm is down 16%, while the former parent in down 10%....
On June 4, 2018, Wyndham Worldwide (old New York symbol WYN) split into two new companies. For every WYN share investors held, they received one share each of the new companies—Wyndham Hotels and Resorts, and Wyndham Destinations (now called Travel + Leisure).
Both stocks continue to rebound from their 2020 lows as travel volumes return to pre-pandemic levels....
Both stocks continue to rebound from their 2020 lows as travel volumes return to pre-pandemic levels....