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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The coronavirus pandemic cancelled most vacation plans. However, reopening of the economy should spur strong demand for domestic travel—especially for lodgings that guests reach by car. Both Wyndham Destinations and Wyndham Hotels and Resorts should benefit from that surge.


The two companies were formed on June 4, 2018, when the old Wyndham—Wyndham Worldwide (old New York symbol WYN)—split its operations....
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The coronavirus pandemic and the resulting economic downturn has increased the risk of all stocks. However, there are still plenty of appealing opportunities for investors with a long-term outlook.


Those include two new spinoffs—Otis and Carrier—from aerospace giant Raytheon Technologies, which is itself a newly formed company.


The virus, unfortunately, has overshadowed the strong potential of these firms.


While construction activity will likely slow over the next year or two, Otis gets most of its revenue repairing existing elevators and escalators....
Use a spinoff strategy to target investments that are often highly undervalued and come with lot of portfolio-building power
A: Eli Lilly & Co., $155.03, symbol LLY on New York (Shares outstanding: 957.0 million; Market cap: $151.0 billion; www.lilly.com), has now recovered all of the gains it lost in the market downturn....

Introduction


Successful Investors always give dividend stocks the respect they deserve and most view them as the foundation of a sound and profitable investment portfolio.

But finding the right dividend payers can be challenging for new investors as well as experienced ones....
As our subscriber, you know that ACI Worldwide and Broadridge are not household names. Still, you also know that does nothing to diminish the vital role they play for corporations relying on their back-office supports.


In addition, you should know that both of these service providers have business models that will let them prosper despite COVID-19’s huge economic and social impact.


That’s why we continue to see both ACI Worldwide and Broadridge as buys for your future gains.


ACI WORLDWIDE, $24.32, is a buy. The company (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (www.aciworldwide.com; Shares outstanding: 116.1 million; Market cap: $2.9 billion; No dividends paid) makes software for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....
Despite the COVID-19 outbreak, Goodfood continues to gain more and more customers. The stock is now up almost 20% for investors since we first recommended it in our December 2019 issue of Power Growth Investor at $3.02.


Goodfood’s stellar results in the latest quarter came before the COVID-19 virus really began to force Canadians to stay home....