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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DANAHER CORP. $244 is a buy. The company (New York symbol DHR; Manufacturing sector; Shares o/s 713.1 million; Market cap: $174.0 billion; Dividend yield: 0.4%; Takeover Target Rating: Medium; www.danaher.com) is a leading maker of precision-testing equipment and tools....
The stock market rebound from the March 2020 downturn at the start of the pandemic spurred several spinoff announcements. More announcements have followed in the year since. Here are two recent spinoffs (one completed, one upcoming) that we like.
VERINT SYSTEMS INC....
BCE may have disappointed some aggressive investors in the past five years—it’s now roughly in the middle of its $50 to $65 price range for that period. However, income-seekers are no doubt pleased at the rise in its dividend, from $2.60 a share in 2015 to the current 2021 rate of $3.50, in the midst of an historic depression in bond interest rates and other sources that investors rely on for income.
While BCE’s payout has climbed, the company and its industry have made fundamental progress that’s likely to pay off with substantial gains in the next five years.
We’re used to—and quite happy with—the variable performance we’ve received over the years from BCE....
While BCE’s payout has climbed, the company and its industry have made fundamental progress that’s likely to pay off with substantial gains in the next five years.
We’re used to—and quite happy with—the variable performance we’ve received over the years from BCE....
Hedge funds and others using activist investing strategies can push companies to higher levels of profit and efficiency
United Technologies (now Raytheon Technologies following its merger with Raytheon Co.) was our top Conservative pick for 2020. We liked that the merger, along with the spinoffs of Otis and Carrier, created a pure-play aerospace leader. Those moves also cut the old company’s exposure to commercial airline customers, many of which have reduced their spending on new equipment due to COVID-19’s spread.
Uncertainty over the pandemic has delayed some of the benefits of the transformation....
Uncertainty over the pandemic has delayed some of the benefits of the transformation....
These two stocks are up sharply in the past year, thanks largely to the completion (or announcement) of spinoffs. However, we feel Raytheon is in a stronger position to keep rising as the economy recovers from the pandemic.
RAYTHEON TECHNOLOGIES CORP....
Here’s an Excerpt from a recent issue of Advice for Inner Circle Pro Members:
“One form of technical analysis is the Relative Strength Indicator (RSI)....
Spinoff announcements have started to pick up as stock markets continue to recover from the March 2020 COVID-19 downturn. Here are two upcoming spinoffs that we expect will unlock value and fuel your returns.
IAC/INTERACTIVE CORP. $205 is a buy. The Internet and media company (Nasdaq symbol IAC; Manufacturing & Industry Sector; Shares outstanding: 85.3 million; Market cap: $17.5 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) has a long history of developing online businesses and spinning them off when it feels they are ready to thrive on their own....
We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc.
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 has further gains ahead for investors. We recommend this stock as a Power Buy.
ABBVIE INC., $104.64, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $181.5 billion; Dividend yield: 5.0%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies....
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 has further gains ahead for investors. We recommend this stock as a Power Buy.
ABBVIE INC., $104.64, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $181.5 billion; Dividend yield: 5.0%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies....
One of the big drivers of interest in spinoffs is that they create companies focused on a single business. Investors prefer these “pure-play” firms as they are easier to evaluate as potential takeover targets. Even without those kind of offers, we expect shares of Synnex and its new spinoff, Concentrix, to push higher.
SYNNEX CORPORATION $83 is a spinoff buy. The company (New York symbol SNX; Manufacturing sector; Shares outstanding: 51.5 million; Market cap: $4.3 billion; Dividend suspended in March 2020; Takeover Target Rating: Medium; www.synnexcorp.com) provides a range of distribution, logistics and integration services for the technology industry....