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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A key reason behind our enthusiasm for spinoffs is that the newly spun-off firm could become an attractive takeover target. For example, several firms would probably be interested in buying Aramark’s uniforms business following its spinoff in order to take on industry leader Cintas....
DANAHER CORP. $251 is a buy. The company (New York symbol DHR; Manufacturing & Industry sector; Shares outstanding 715.9 million; Market cap: $179.7 billion; Dividend yield: 0.4%; Takeover Target Rating: Medium; www.danaher.com) is a leading maker of precision-testing equipment and tools....
Spinoffs pay off in key ways: they let businesses better focus on their main operations, and they open the door to possible takeovers. Here are two recent examples.
CRANE HOLDINGS CO. $88 is a buy. The company (New York symbol CR; Manufacturing & Industry sector; Shares outstanding: 56.1 million; Market cap: $4.9 billion; Dividend yield: 2.1%; Takeover Target Rating: Medium; www.craneco.com) makes and distributes products for the construction, aerospace, defence, and other industries....
CRANE HOLDINGS CO. $88 is a buy. The company (New York symbol CR; Manufacturing & Industry sector; Shares outstanding: 56.1 million; Market cap: $4.9 billion; Dividend yield: 2.1%; Takeover Target Rating: Medium; www.craneco.com) makes and distributes products for the construction, aerospace, defence, and other industries....
Finding undervalued growth stocks for your portfolio is easier if you follow these tips—including spotting spinoffs and tech shares to invest in
A key reason for corporate spinoffs is they create companies that focus on a single business. Investors prefer these “pure-play” firms as they are easier to evaluate as potential takeover targets.
A good example is the former Fortune Brands holding company, which spun off Fortune Brands Home & Security in October 2011....
A good example is the former Fortune Brands holding company, which spun off Fortune Brands Home & Security in October 2011....
Swiss pharmaceutical giant Novartis spun off Alcon in 2019. And 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 77% from its March 2020 low, but we think it can go much higher....
The stock is already up over 77% from its March 2020 low, but we think it can go much higher....
These two iconic U.S. conglomerates are using spinoffs to unlock their holding company discount. We feel these moves will ultimately succeed, but prefer Johnson & Johnson for your new buying.
JOHNSON & JOHNSON $176 is a spinoff buy. The company (New York symbol JNJ; Consumer sector; Shares outstanding: 2.6 billion; Market cap: $457.6 billion; Dividend yield: 2.6%; Takeover Target Rating: Medium; www.jnj.com) operates through three major businesses: Pharmaceutical (55% of 2021 revenue) makes anti-infective, antipsychotic, contraceptive, dermatological, and gastrointestinal medicines; Medical Devices (29%) sells a range of orthopedic, surgical, cardiovascular, sterilization, diabetic, and vision-care devices; and Consumer Health (16%) makes over-the-counter products such as Johnson’s baby-care items, Band-Aid bandages, Tylenol and Motrin painkillers, Listerine mouthwash, and Neutrogena skin cream.
The company still plans to spin off its Consumer Health business as a separate firm in 2023.
Meantime, in the quarter ended April 3, 2022, Johnson & Johnson’s sales rose 5.0%, to $23.43 billion from $22.32 billion a year earlier....
JOHNSON & JOHNSON $176 is a spinoff buy. The company (New York symbol JNJ; Consumer sector; Shares outstanding: 2.6 billion; Market cap: $457.6 billion; Dividend yield: 2.6%; Takeover Target Rating: Medium; www.jnj.com) operates through three major businesses: Pharmaceutical (55% of 2021 revenue) makes anti-infective, antipsychotic, contraceptive, dermatological, and gastrointestinal medicines; Medical Devices (29%) sells a range of orthopedic, surgical, cardiovascular, sterilization, diabetic, and vision-care devices; and Consumer Health (16%) makes over-the-counter products such as Johnson’s baby-care items, Band-Aid bandages, Tylenol and Motrin painkillers, Listerine mouthwash, and Neutrogena skin cream.
The company still plans to spin off its Consumer Health business as a separate firm in 2023.
Meantime, in the quarter ended April 3, 2022, Johnson & Johnson’s sales rose 5.0%, to $23.43 billion from $22.32 billion a year earlier....
BROOKFIELD ASSET MANAGEMENT INC. $59 is a hold. The company (Toronto symbol BAM.A; Finance sector; Shares outstanding: 1.6 billion; Market cap: $94.4 billion; Dividend yield: 1.2%; Takeover Target Rating: Lowest; www.brookfield.com) is an asset manager that controls firms in the real estate, renewable power, infrastructure and private equity industries.
The company plans to spin off its asset management business into a separate, publicly listed company....
The company plans to spin off its asset management business into a separate, publicly listed company....
The COVID-19 pandemic continues to spur consumer online shopping. That, in turn, is forcing businesses to find new ways to efficiently deliver their products to customers, including the use of last-mile services that drop off goods to shoppers’ homes.
To better take advantage of this trend, XPO Logistics is using spinoffs and asset sales to focus solely on its North American trucking business....
To better take advantage of this trend, XPO Logistics is using spinoffs and asset sales to focus solely on its North American trucking business....
TWITTER INC., $45.08, symbol TWTR on New York, offers users a global platform to express themselves on the Internet in real time. Its website lets people create, distribute, and discover content. Platform partners include publishers, media outlets, and developers.
Advertisers use Twitter’s Promoted Products, the majority of which are pay-for-performance, to promote their brands, products, and services....
Advertisers use Twitter’s Promoted Products, the majority of which are pay-for-performance, to promote their brands, products, and services....