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.
Read More
Close
SONY CORP. ADRs $62 is still a hold. The Japanese conglomerate (New York symbol SNE; Manufacturing sector; ADRs outstanding: 1.3 billion; Market cap: $80.6 billion; Dividend yield: 0.6%; Takeover Target Rating: Lowest; www.sony.net) has created a new subsidiary called Sony Electronics Corporation to hold three of its businesses—Imaging Products and Solutions, Home Entertainment and Voice, and Mobile Communication.
The reorganization seems to be in response to reports that activist investor Daniel Loeb is taking advantage of Sony’s weaker stock price during the COVID-19 outbreak to increase his stake in the company.
At last report, he held about 2% of Sony, and still wants the company to separate its entertainment businesses (including Columbia Studios and Sony Music) from its electronic-manufacturing operations....
The reorganization seems to be in response to reports that activist investor Daniel Loeb is taking advantage of Sony’s weaker stock price during the COVID-19 outbreak to increase his stake in the company.
At last report, he held about 2% of Sony, and still wants the company to separate its entertainment businesses (including Columbia Studios and Sony Music) from its electronic-manufacturing operations....
Sharp share-price drops due to the coronavirus outbreak will likely encourage activist investors to raise their stake in—and influence on—these three firms (including Sony—see box). However, for reasons outlined below, we advise you to stay on the sidelines, at least for now.
OCCIDENTAL PETROLEUM CORP....
OCCIDENTAL PETROLEUM CORP....
We first recommended Leidos to you as buy in our December 2017 issue at $62; your shares then rose to $125 in February 2020 before the coronavirus outbreak pulled down the market. Even so, Leidos is still up an impressive 50% since our initial 2017 recommendation.
Your long-term prospects with this stock remain strong....
Your long-term prospects with this stock remain strong....
Spinoffs offer flexibility. Spinning off unwanted assets lets the parent company’s managers focus on that part of the business they want to retain. Usually they hold on to operations best suited to their talents.
Spun-off shares often slump when they begin trading. Many investors routinely dump stock they receive in a spinoff....
Spun-off shares often slump when they begin trading. Many investors routinely dump stock they receive in a spinoff....
We think today’s bear market has done as much damage as it is likely to do. In fact, the market has now moved back up enough that investors worry about whether to buy now or to “wait for a dip” when “things settle down.”
My view is that you should look beyond short-term setbacks....
My view is that you should look beyond short-term setbacks....
Under a new long-term strategy, Pfizer is concentrating on what it does best: developing new patented drugs that generate strong returns for its shareholders.
As part of that plan, the company is merging its over-the-counter and generic drugs businesses with those of other pharmaceutical firms to form joint ventures....
As part of that plan, the company is merging its over-the-counter and generic drugs businesses with those of other pharmaceutical firms to form joint ventures....
Learn how to find spinoff stocks to add value to your portfolio with these unique and profitable investments
New corporate spinoffs are often the target for value seekers, while new stock issues often pose problems
Note--this is part of a continuing Inner Circle Spotlight Report: The Successful Investor Guide to Bear Market Investing
Like a lot of beginning investors, I took an early interest in “market lore”—rules for making money in the stock market. These rules aim to tell you how to spot good stocks to buy, good times to buy or sell them, how much to pay, etc....
Like a lot of beginning investors, I took an early interest in “market lore”—rules for making money in the stock market. These rules aim to tell you how to spot good stocks to buy, good times to buy or sell them, how much to pay, etc....
Slack Technologies’ software plays into a rapidly expanding modern trend—remote working. That trend has only gathered strength with the big swing in work-from-home spurred by the COVID-19 virus.
However, we liked this Power Buy before the current crisis, and we still like it now for its strong future potential.
SLACK TECHNOLOGIES INC....
However, we liked this Power Buy before the current crisis, and we still like it now for its strong future potential.
SLACK TECHNOLOGIES INC....