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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VERINT SYSTEMS INC. $589 is a spinoff buy. The software maker (Nasdaq symbol VRNT; Manufacturing & Industry Sector; Shares outstanding: 66.8 million; Market cap: $3.9 billion; No dividend paid; Takeover Target Rating: Medium; www.verint.com) plans to split the company into two separate, publicly traded businesses in early 2021.
The customer engagement business will have almost $1 billion in sales while its cyber intelligence business will have sales of about $500 million....
The customer engagement business will have almost $1 billion in sales while its cyber intelligence business will have sales of about $500 million....
As we often remind investors, spinoffs are one of the best ways for companies to enhance investor value. Here are two stocks set to benefit from setting up smaller operations as separate firms.
IAC/INTERACTIVE CORP. $272 is a buy. The company (Nasdaq symbol IAC; Manufacturing & Industry Sector; Shares outstanding: 84.6 million; Market cap: $23.0 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) owns several online businesses, including U.S....
IAC/INTERACTIVE CORP. $272 is a buy. The company (Nasdaq symbol IAC; Manufacturing & Industry Sector; Shares outstanding: 84.6 million; Market cap: $23.0 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) owns several online businesses, including U.S....
Long before 2020—indeed, for several decades—we’ve advised Canadian investors to spread their holdings out geographically between Canadian and U.S. stocks. Our view is that virtually all Canadian investors should have, say, 20% to 30% of their portfolios in U.S. stocks, with the remainder primarily in Canadian stocks....
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....
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%....
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....
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....
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....