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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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....
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....
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....
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....
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....
Domino’s soared to a new all-time high of $382 in mid-February. But even with the recent market fall, it has only dropped to where it was before that leap. The jump came from a stellar quarter of earnings spurred by changes that, coincidentally, will serve it very well in the current “social distancing” environment.


DOMINO’S PIZZA $290.00 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 39.0 billion; Market cap: $11.3 billion; Divd....
Since COVID-19, Texas Roadhouse has dropped along with the market, but we think it’s well-positioned to weather the storm and then bounce back even stronger.


As concern over the COVID-19 virus spreads, it’s highly likely that people will visit restaurants less....
Subscriber update on April 3, 2020

We now see Luckin Coffee as a sell. The stock has dropped sharply on news that the company’s board of directors is investigating reports that senior executives and employees engaged in financial misconduct. Luckin is looking into allegations that chief operating officer Jian Liu and other employees reporting faked sales transactions amounting to $310 million.
The company’s long-term business model appears intact, and while the allegations are serious, the huge drop may more reflect today’s extremely volatile markets rather than the impact of the potential misconduct....