spinoffs

Our approach to investing has a lot in common with activist investment firms. Like us, they’re always on the look out for companies with hidden assets that can be used to increase investor value. We see particularly strong value in a company’s ability to generate gains for its investors by spinning off some of its assets.


Below you’ll find two examples of well-known stocks that have attracted the attention of activist investors....

To unlock value for investors, on November 1, 2016, the old Alcoa Inc. split into two separate companies—Arconic Inc. (focused on manufactured aluminium products) and spinoff Alcoa Corp. (focused on bulk aluminum). For every three of the old shares investors held, they received three shares in Arconic and one in Alcoa.


Since the split, investors’ shares have gained an impressive 53%....

In addition to Danaher—our top spinoff pick for 2020—this month we highlight several other spinoff opportunities ready to deliver your portfolio enviable returns.


They include aluminum products maker Arconic, which now plans to break itself into two separate firms....

When selecting your #1 spinoff stock for 2020, we considered all recent spinoffs. But, we also considered the firms that did the actual spinning off. As a TSI subscriber, you already know the power of spinoffs to hand you gains that far exceed those of comparable stocks....

KAR AUCTION SERVICES INC. $22 is still a buy for aggressive investors. The company (New York symbol KAR; Manufacturing & Industry sector; Shares outstanding: 133.4 million; Market cap: $2.9 billion; Dividend yield: 3.5%; Takeover Target Rating: Medium; www.karauctionservices.com) sells used vehicles at 250 physical auction sites in North America and over the Internet....

Overall, as we’ve said many times before times, we think that spinoffs are the closest thing you can find to a sure thing. The two stocks we look at on the page 1 of this month’s issue, Agilent and Keysight, are great examples of this. Now, we’ve spotted two more stocks for you that look ready to undertake spinoffs....

Investors in this U.S. gunmaker have seen their shares plummet 70% in the past three years. That’s partly because gun sales tend to increase when owners expect higher regulations, but the pro-gun policies of the Trump administration have dampened those fears.


As well, mass shootings have prompted big retail chains like Walmart to scale back the guns and ammunition they carry in their stores.


In response to those factors, American Outdoor Brands (which changed its name from Smith & Wesson in 2017 to reflect its outdoor products and accessories) plans to spin off its firearms business....

Welcome to your latest issue of Spinoffs & Takeovers! This month, we highlight spinoff opportunities ready to deliver strong returns for your portfolio. They include Keysight, and eBay and Aramark, among several others.


In addition, we provide you with key analysis of stocks now in the crosshairs of activist investors—and with the potential for lucrative spinoffs or takeovers....

It’s been a key part of our message on the value of spinoffs, and we never tire of repeating it for you: According to several academic studies, spinoffs benefit not only the new company but the former parent as well.


A good example is Agilent, a long-time favourite of ours....

Studies show that both a spinoff and its parent company perform better for investors than comparable firms for several years following their split. That’s especially so with industry leaders like these two. Both are Buys for investors.


FirstService set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015....