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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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....
Special Market Report: Coronavirus
Today’s Inner Circle Q&A features a special report from Pat on the current state of the stock market in light of the coronavirus, and its impact on your investments.
Please read on for Pat’s thoughtful and practical views on what investors should consider in times like this.
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....
Successful investors, like successful businesses, need to keep an open mind about the way they do things. Neither one can afford to keep doing something just because “we’ve always done it that way.” That applies to investing basics such as bonds.
Many casual investors, financial journalists and brokers take it for granted that owning some bonds is a good thing....
Many casual investors, financial journalists and brokers take it for granted that owning some bonds is a good thing....
We often remind our readers that spinoffs are a great way for companies to unlock hidden value. A good example is eBay’s move in 2015 to set up its payment-processing business, PayPal, as a separate company.
That spinoff has worked out very well for PayPal shareholders, who have enjoyed a huge 187% gain since the split....
That spinoff has worked out very well for PayPal shareholders, who have enjoyed a huge 187% gain since the split....
Linamar’s shares were trading as high as $80.59 a share in November 2017. They have since fallen to $39.53—a 50.9% drop in market value. That includes the 20.1% decrease since the start of 2020. Some investors worry this downward trend will continue, mainly because the company is often viewed as simply an auto-parts supplier, overly exposed to the current slump in the automotive industry....
We’ve said for a long time that growth by acquisition is inherently riskier than internal growth since it carries an above-average chance of unpleasant surprises. That’s because a buyer of something rarely knows as much about it as the seller.
Still, some companies do it a lot better than others—and successfully integrating acquisitions can spur strong growth and share-price jumps for their investors.
Stantec’s strategy of making small acquisitions is safer than making big purchases because any mistakes tend to be smaller....
Still, some companies do it a lot better than others—and successfully integrating acquisitions can spur strong growth and share-price jumps for their investors.
Stantec’s strategy of making small acquisitions is safer than making big purchases because any mistakes tend to be smaller....
When a company moves into a new and exciting area, it can provide even more of a catalyst for strong investor returns. Here’s a stock using data it gathers to generate a new revenue stream and more. We think it will let you build on its 76% gain over the last year.
RESMED INC....
RESMED INC....
Long-time readers know that we are constantly keeping you up to date on important news affecting the stocks we cover. And, of course, we also aim to highlight stocks with especially bright outlooks for TSI Power Growth Investors. Here are two buys that stand out this month:
CALIAN GROUP $47.00 (Toronto symbol CGY; TSINetwork Rating: Speculative) (613-599-8600; www.calian.com; Shares outstanding: 8.0 million; Market cap: $377.6 million; Dividend yield: 2.4%) has two main opertions: Business and Technology Services (contributing 70% of revenue) provides engineers, health-care workers and other skilled professionals on a contract basis; and Systems Engineering (30% of revenue) sells hardware and software for satellite and other communications systems.
In the quarter ended December 31, 2019, Calian’s revenue jumped 24.1%, to $99.2 million from $79.9 million a year earlier....
CALIAN GROUP $47.00 (Toronto symbol CGY; TSINetwork Rating: Speculative) (613-599-8600; www.calian.com; Shares outstanding: 8.0 million; Market cap: $377.6 million; Dividend yield: 2.4%) has two main opertions: Business and Technology Services (contributing 70% of revenue) provides engineers, health-care workers and other skilled professionals on a contract basis; and Systems Engineering (30% of revenue) sells hardware and software for satellite and other communications systems.
In the quarter ended December 31, 2019, Calian’s revenue jumped 24.1%, to $99.2 million from $79.9 million a year earlier....