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 market ups and downs.


Alcon also gives you two other exciting ways to profit....
BLACKBERRY LTD. $6.92 is still a hold. The company (Toronto symbol BB; Manufacturing & Industry sector; Shares outstanding: 552.0 million; Market cap: $3.8 billion; No dividend paid; Takeover Target Rating: Medium; www.blackberry.com) quit developing smartphones in 2016 to concentrate on its more-promising security software....
DANAHER CORP. $176 is still our #1 Spinoff Buy for 2020. The company (New York symbol DHR; Manufacturing & Industry sector; Shares outstanding 707.2 million; Market cap: $124.5 billion; Dividend yield: 0.4%; Takeover Target Rating: Medium; www.danaher.com) is a leading maker of precision-testing equipment and tools....
Trisura is a good example of the third part of our three-prong approach to investing—downplay stocks in the media/broker limelight (the other two parts, of course, are invest in well-established companies; and spread your money across most if not all of the five main economic sectors).


On June 22, 2017, Brookfield Asset Management Inc....
VALVOLINE INC. $20 is a spinoff buy for aggressive investors. The company (New York symbol VVV; Manufacturing & Industry sector; Shares outstanding: 185.0 million; Market cap: $3.7 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.valvoline.com) is a leading maker of motor oil, lubricants and other automotive chemicals such as antifreeze....
Despite the negative impact of COVID-19, these two spinoff firms demonstrate our belief that spinoffs are the closest you can get to a sure thing in investing. Even after their impressive gains, we feel both Fortive and Yum China are in a strong position to move even higher.


FORTIVE CORP....
US FOODS HOLDING CORP. $20 is a hold. The company (New York symbol USFD; Consumer sector; Shares outstanding: 220.3 million; Market cap: $4.4 billion; No dividend paid; Takeover Target Rating: Medium; www.usfoods.com) is one of the largest foodservice distributors in the U.S....

We pay attention to activist investors because they look for the same thing we do—hidden assets that a company can either spin off or sell. eBay, below, is a great example. Still, not every stock that activists target—GameStop is a prime example—is worth buying.


EBAY INC....
The COVID-19 pandemic has forced Nielsen to delay the spinoff of its Global Connect business until 2021. Even so, we’re confident the plan will ultimately reward investors with a stake in two pure-play companies, better focused on improving their core businesses.


NIELSEN HOLDINGS PLC $15 is a spinoff buy for aggressive investors. The New York-based company (New York symbol NLSN; Manufacturing & Industry sector; Shares o/s: 356.5 million; Market cap: $5.3 billion; Dividend yield: 1.6%; Takeover Target Rating: Medium; www.nielsen.com) is a provider of information and measurement services to give companies a better understanding of consumer behaviour....
Here’s an Excerpt from the June 16 issue of Advice for Inner Circle Pro Members:


“Based on lots of things I’m looking at, I’m still reasonably sure that stock prices will be higher in a year or two than they are today. But the market rarely goes straight up or down....