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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We’ve often pointed out that buying stocks when they’re in the broker/media limelight is a risky way to invest. Electric-car maker Tesla Inc. $282.03 (symbol TSLA on Nasdaq) may be today’s best example of what we mean. Founder Elon Musk and his company get a lot of attention because of his past successes with companies he launched earlier in his career, and because some of his business activities appeal to investors who have strong feelings about the risks of climate change....
Savvy investors who track upcoming spinoffs position themselves to tap the market’s best performers
Spinoffs are great way for companies with various, unrelated operations to unlock hidden value. That’s because “pure play” companies that focus on a single business are much easier to evaluate than entities inside a larger corporate structure.
A good example of this is WestRock Co., and its spinoff.
On May 16, 2016, the leading cardboard-packaging maker spun off its specialty chemical operations as Ingevity....
A good example of this is WestRock Co., and its spinoff.
On May 16, 2016, the leading cardboard-packaging maker spun off its specialty chemical operations as Ingevity....
In a recent Hotline for our Spinoffs, Takeovers & Special Situations newsletter, we alerted investors to the increasing likelihood that Campbell Soup Co. (a recommendation of our Wall Street Stock Forecaster) would either put itself up for sale or spin off some of its operations....
The U.S. Supreme Court recently lifted 26-year-old limits on the U.S. sports betting market. This has created some special-situation investment opportunities. This week we are zeroing in on two of them.
Since 1992, a federal ban has effectively restricted legal sports betting to Nevada....
Since 1992, a federal ban has effectively restricted legal sports betting to Nevada....
One of Canada’s leading software companies, Open Text has attracted an activist investor from the U.S. Share buybacks, dividend increases and a potential acquisition are all part of the activist’s plan to raise the company’s profile south of the border.
On July 1, 2016, Hertz Global Holdings spun off its equipment-rental business as Herc Holdings, and handed out shares in the new company to its existing shareholders. Hertz Global Holdings then continued on as a car rental company.
Since the split, Hertz (car rentals) has struggled and the stock is now down about 67%....
Since the split, Hertz (car rentals) has struggled and the stock is now down about 67%....
5 tips from our TSI Takeover Target Rating system for even better results with spinoff investing
What are mining stocks?
Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.
Mining stocks can be strong performers when commodity prices move up....
A: Open Text, $47.10, symbol OTEX on Toronto (Shares outstanding: 263.1 million; Market cap: $12.5 billion; www.opentext.com), develops, markets, licenses and supports collaboration and enterprise-information-management software for corporate clients....