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.
Read More
Close
In 2014, Agilent, a long-time favourite of ours, spun off its electronics-testing business (Keysight) as a separate company. The move made sense, as it let Agilent focus on its main medical lab equipment business.
Keysight has mostly stayed in a narrow range since the split, but a recent acquisition has helped push it up nearly 40% since the beginning of the year....
You might say there are two kinds of rules that can help you with investing decisions—soft and hard. Soft rules apply to things that can change such as laws about securities and other financial matters, accounting procedures, industry practices, technological development and so on....
Adding the best value-investing stock picks to your portfolio starts with looking for hidden assets and overall investment quality
Here’s how to find undervalued stock picks—those that are reasonably priced, if not cheap, in relation to their sales, earnings and assets—tand maximize your long-term profits
One of the reasons we like spinoffs so much is that academic studies often show that both the parent and the new company created by the spinoff generally do better than comparable firms for at least several years after the split takes place.
For example, a recent study by Mohnish Pabrai (the managing partner of the Pabrai Investment Funds—a family of hedge funds) examined the performance of a portfolio of five spinoff stocks against the S&P 500 Index.
Each spinoff company in the portfolio must be between one and seven years old, and meet other criteria....
For example, a recent study by Mohnish Pabrai (the managing partner of the Pabrai Investment Funds—a family of hedge funds) examined the performance of a portfolio of five spinoff stocks against the S&P 500 Index.
Each spinoff company in the portfolio must be between one and seven years old, and meet other criteria....
We first recommended Lamb Weston as a spinoff buy at $47 in our first issue of TSI Spinoffs, Takeovers and Special Situations. Since then—October 2017—the stock has risen 49%.
We feel Lamb Weston has more gains ahead as it continues to expand sales and profits....
Global food giants are eager to spur growth—either by swapping their sugary offerings for more healthful treats or by acquiring and then streamlining smaller competitors. Apart from market leaders PepsiCo and Coca-Cola, other big firms, like Kraft Heinz, are looking to make more acquisitions.
Below are special reports on two smaller food companies that we cover in our Spinoffs, Takeovers & Special Situations newsletter....
Below are special reports on two smaller food companies that we cover in our Spinoffs, Takeovers & Special Situations newsletter....
United Technologies recently completed its acquisition of Rockwell Collins—a rival maker of aircraft parts. Like most big acquisitions, this one adds risk, but it also comes with several long-term benefits. Those include giving United Technologies more clout when negotiating new deals with big aircraft makers such as Boeing and Airbus.
The company now plans to spin off its Otis (elevators) and Carrier (heating and air conditioning) operations as two separate companies....
Our complete guide to spinoffs is ready to download FREE: Spinoff Stock Investigator: All You Need to Know about Reaping the Rewards of Spinoffs.
Recently some Inner Circle members have asked why the price/earnings ratios, or P/Es, of automakers, such as Ford Motor Co., are as low as they are today. They wonder if these low P/Es represent a warning sign, or a buying opportunity. There’s no simple answer to that question....