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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Adobe has dropped 24.3% from the all-time peak of $389 it reached in February 2020. Even so, it’s still up 16% over the last year, and up a spectacular 5,900.2% since we first recommended it in July 1998.
In 2011, the software provider was one of the first to end sales of boxed software and move its products to a software-as-a-service model....
In 2011, the software provider was one of the first to end sales of boxed software and move its products to a software-as-a-service model....
In March 2019, activist investment firm Sachem Head Capital Management announced that it had acquired 8.9% of Eagle Materials. It now owns around 7% of the company.
Sachem originally pushed the company to sell its fracking sands business, which has struggled in recent years as oil producers opt instead to use brown sand from suppliers close to their wells....
Sachem originally pushed the company to sell its fracking sands business, which has struggled in recent years as oil producers opt instead to use brown sand from suppliers close to their wells....
New spinoff stocks often drift sideways for a few years until building a history of earnings and attracting analysts.
As a new spinoff from Danaher, Envista is still an attractive choice for aggressive investors. However, we’re less confident about Match Group’s short-term prospects even as parent company IAC hands out the rest of its holding in the new company to its investors.
ENVISTA HOLDINGS CORP....
As a new spinoff from Danaher, Envista is still an attractive choice for aggressive investors. However, we’re less confident about Match Group’s short-term prospects even as parent company IAC hands out the rest of its holding in the new company to its investors.
ENVISTA HOLDINGS CORP....
ED ROBIN GOURMET BURGERS INC. $5.18 is a sell. The company (Nasdaq symbol RRGB; Consumer sector; Shares outstanding: 12.9 million; Market cap: $66.8 million; No dividend paid; Takeover Target Rating: Highest; www.redrobin.com) is a casual dining chain with 556 Red Robin restaurant locations in the U.S....
It’s a good idea for you to keep an eye on activist investors, as they often look for the same hidden assets we do. When they find those assets, activists tend to zero in on the undervalued company and pressure it to spin off or sell parts of its operations to add value for all investors.
For example, an activist has helped spur AT&T to cut its debt and buy back shares....
For example, an activist has helped spur AT&T to cut its debt and buy back shares....
We normally advise investors to avoid new stock issues as they typically come to market when it’s a good time for the company or its insiders to sell. That may not be a good time for you to buy. However, we’re making an exception for Reynolds Consumer Products....
In a sudden and deep stock-market drop like the one of the past few weeks, it’s all too easy to respond impulsively or go to extremes. You may feel a temptation to sell all your stocks and “wait for things to settle down” before going back in the market. Or you may feel an urge to “average down”: buy more of your biggest losers....
MCKESSON CORP. $136 is a buy for spinoff gains. The company (New York symbol MCK; Consumer sector; Shares outstanding: 177.1 million; Market cap: $24.1 billion; Dividend yield 1.2%; Takeover Target Rating: Medium; www.mckesson.com) is the largest wholesale drug distributor in the U.S....
Historically, we have recommended few pharmaceutical stocks for our readers’ portfolios. That’s because those companies must continually invest large sums to develop new drugs as their older products lose their patent protection. Even then, there’s no guarantee those new drugs will repeat past successes.
However, Merck’s plan to combine some of its smaller businesses and then spin them off as one company helps offset some of that risk.
While the split gives investors a stake in the new company, it also lets the remaining firm focus on its most-promising drugs while lowering its costs....
However, Merck’s plan to combine some of its smaller businesses and then spin them off as one company helps offset some of that risk.
While the split gives investors a stake in the new company, it also lets the remaining firm focus on its most-promising drugs while lowering its costs....
The human and economic damage from Covid-19 so far is minor, compared to what may happen in the coming weeks and months. The stock-market drop to date partly reflects investor guesswork on that future damage may be. Investors are taking their cue from published predictions about the great damage still to come....