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
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.
Here are three reasons to avoid high-risk investments—and advice on buying blue-chip stocks instead
Spinoffs are often seen as an effective way for a holding company to eliminate its “holding company discount.” That discount is usually evident in the stock price of a company that holds a variety of assets, or that invests in a number of businesses.
Given the diverse asset base of a holding company, investors often overlook, or discount, any holdings that comprise just a small part of its total assets....
Given the diverse asset base of a holding company, investors often overlook, or discount, any holdings that comprise just a small part of its total assets....
In 2000, the old Hewlett-Packard spun off its testing equipment business (Agilent). Since then, Agilent has completed two spinoffs of its own: Verigy (in 2006), a maker of computer chip testing gear; and Keysight (in 2014), focused on products for testing electronic equipment....