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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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....
UNITED TECHNOLOGIES CORP. $123 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 801.0 million; Market cap: $98.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.utc.com) has completed its acquisition of Rockwell Collins Inc....
If you are able to find undervalued Canadian stocks of companies with a history of sales and earnings, those value stocks can lead to a strong portfolio



DowDuPont LISTEN:




Chemical giant DowDuPont continues to plan for its split into three new businesses, following last year’s big merger.


The stock has suffered in the past few months over concerns trade disputes could slow global growth....
HILTON WORLDWIDE HOLDINGS $73 (New York symbol HLT; Consumer sector; Shares outstanding: 296.6 million; Market cap: $21.7 billion; Dividend yield: 0.8%; Takeover Target Rating: Medium; www.hiltonworldwide.com) owns, manages and franchises hotels under several brands, including Hilton, Waldorf Astoria, Doubletree and Embassy Suites by Hilton....
HILTON WORLDWIDE HOLDINGS $73 (New York symbol HLT; Consumer sector; Shares outstanding: 296.6 million; Market cap: $21.7 billion; Dividend yield: 0.8%; Takeover Target Rating: Medium; www.hiltonworldwide.com) owns, manages and franchises hotels under several brands, including Hilton, Waldorf Astoria, Doubletree and Embassy Suites by Hilton....
Chemical giant DowDuPont continues to plan for its split into three new businesses, following last year’s big merger.


The stock has suffered in the past few months over concerns trade disputes could slow global growth. Cyclical industrial manufacturers, such as automakers, are the company’s major customers and they depend on that growth.


However, DowDuPont’s upcoming breakup should help unlock significant value for its shareholders.


DOWDUPONT INC....
We recently upgraded our advice on Mondelez from hold to buy in our Wall Street Stock Forecaster.

That’s mainly because the company is now starting to see the benefits of a multi-year restructuring plan. Besides improving its profitability, new plants and machinery have also made it easier for Mondelez to alter the size and composition of its snack foods to meet changing consumer tastes in various countries.

The company’s stake in Keurig Dr Pepper—now the seventh-largest food and beverage company in the U.S....