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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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....
This report is written with one purpose in mind—to make you a better investor. How to Invest in Stocks Successfully shows how our three-part approach works for thousands of investors. It helps you develop the positive habits that lead to the best investment decisions.
GENUINE PARTS CO. $89 (New York symbol GPC; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 146.7 million; Market cap: $13.1 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.2%; TSINetwork Rating: Average; www.genpt.com) sells replacement auto parts through 1,100 outlets under the NAPA banner; and the company’s distribution business serves 4,900 independent stores in North America, Australia and New Zealand....
When a company spinoff takes place, it’s often because the company’s management sees it as a good time to do so. Spinoffs involve a lot of work and resources and because of this, companies typically offer a spinoff when conditions are profitable for investors
UNITED TECHNOLOGIES CORP. $125 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 800.1 million; Market cap: $100.0 billion; Price-to-sales ratio: 1.7; Divd. yield: 2.2%; TSINetwork Rating: Above Average; www.utc.com) has four main businesses: Climate, Controls & Security makes Carrier heating and air-conditioning equipment, burglar alarms and fire-safety products; Pratt & Whitney manufactures jet engines; Aerospace Systems makes other aircraft parts; and Otis makes elevators and escalators.
The company will now buy Rockwell Collins Inc....
The company will now buy Rockwell Collins Inc....
Successful investors recognize that when a company spends money on research and development, it can create a hidden asset with the potential to expand the company’s long-term profit.
Companies have to treat research and development spending as a day-to-day expense, much like maintenance or tax payments....
Companies have to treat research and development spending as a day-to-day expense, much like maintenance or tax payments....
What is a spinoff company and how can it impact the value of your investment portfolio? When a company creates a spinoff, it hands out shares in that company to its shareholders, typically providing substantial benefits in the process
What is a value stock worth to savvy investors who recognize its potential? Depending in part upon the hidden or undiscovered aspects of the stock, it could mean much higher stock values in the future and greater gains over the long term.