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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Swiss pharmaceutical giant Novartis spun off Alcon just last year. 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 ups and downs.
The stock is already up over 60% from its March 2020 lows, but we think it can go much higher....
The stock is already up over 60% from its March 2020 lows, but we think it can go much higher....
We continue to see attractive investment opportunities in drug stocks. COVID-19 gave it a boost, of course. But the industry was already going to prosper, thanks to ongoing regulatory and research developments. Still, due to the nature of the business, results will vary widely and unpredictably from one drug company to another....
Learn how to find spinoffs so you can successfully buy what we think are the closest investments in the market to a “sure thing”
HILTON WORLDWIDE HOLDINGS INC. $89 (New York symbol HLT; Consumer Sector; Shares outstanding: 277.3 million; Market cap: $24.7 billion; Dividend suspended; Takeover Target Rating: Lowest; www.hiltonworldwide.com) is a hold. The company owns, manages and franchises hotels under 18 brands, including Hilton, Waldorf Astoria, Doubletree and Embassy Suites by Hilton....
A key benefit of spinoffs is that they create “pure play” companies that focus on a single business. That makes them easier for investors to value.
A good example is cardboard maker WestRock, which spun off its Ingevity chemical business in 2016 to create two pure-play firms....
A good example is cardboard maker WestRock, which spun off its Ingevity chemical business in 2016 to create two pure-play firms....
Here’s an Excerpt from a recent issue of Advice for Inner Circle Pro Members:
“Market lore can make interesting and worthwhile reading....
“Market lore can make interesting and worthwhile reading....
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These two firms are planning spinoffs to pay down their high debt. However, their remaining businesses will likely still carry heavy debt loads.
DELL TECHNOLOGIES INC. $67 is a hold. The company (Nasdaq symbol DELL; Manufacturing sector; Shares outstanding: 746.7 million; Market cap: $50.0 billion; No dividend paid; Takeover Target Rating: Low; www.delltechnologies.com) is a leading maker of computers, monitors and related equipment for consumers and businesses.
The company is now considering spinning off its 80.1% stake in VMWARE INC....
DELL TECHNOLOGIES INC. $67 is a hold. The company (Nasdaq symbol DELL; Manufacturing sector; Shares outstanding: 746.7 million; Market cap: $50.0 billion; No dividend paid; Takeover Target Rating: Low; www.delltechnologies.com) is a leading maker of computers, monitors and related equipment for consumers and businesses.
The company is now considering spinning off its 80.1% stake in VMWARE INC....
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We go back a long way with medical-device supplier Baxter International. The stock is up a whopping 674.9% since we recommended it at $16.75 a share (adjusted for two 2-for-1 share splits) in our December 1999 inaugural issue of Wall Street Stock Forecaster....