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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Some new corporate spinoffs are a target for value seekers, while new stock issues often pose problems
Dear Inner Circle member,
Now it’s “official”—the stock market has fallen by 10% from its peak, which means it has entered a correction phase. We’ll say more about that as needed.
For this week, we’ve prepared a special report on the spinoff of Fortive from its former parent company, Danaher.
That split supports our view on the value of spinoffs: in terms of investing, they are the closest thing you can find to a sure thing, regardless of market ups and downs....
Now it’s “official”—the stock market has fallen by 10% from its peak, which means it has entered a correction phase. We’ll say more about that as needed.
For this week, we’ve prepared a special report on the spinoff of Fortive from its former parent company, Danaher.
That split supports our view on the value of spinoffs: in terms of investing, they are the closest thing you can find to a sure thing, regardless of market ups and downs....
This week we’ve prepared a special report on the breakup/spinoff of the Hilton Hotels empire.
Our view is that spinoffs are the closest thing you can find to a sure thing in investing. That belief, in fact, led us to launch our new Spinoffs, Takeovers & Special Situations newsletter.
Study after study has shown that after an initial adjustment period, spinoffs tend to outperform comparable stocks for several years....
Our view is that spinoffs are the closest thing you can find to a sure thing in investing. That belief, in fact, led us to launch our new Spinoffs, Takeovers & Special Situations newsletter.
Study after study has shown that after an initial adjustment period, spinoffs tend to outperform comparable stocks for several years....
NOVARTIS AG (ADR) $87 (New York symbol NVS; Manufacturing & Industry sector; ADRs outstanding: 2.3 billion; Market cap: $200.1 billion; Takeover Target Rating: Lowest; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.novartis.com) is a Swiss-based company that researches, develops, manufactures, and markets a range of healthcare products worldwide.
Novartis has now hired an investment bank to review options for its dermatology business....
Novartis has now hired an investment bank to review options for its dermatology business....
Dear Inner Circle member,
This will be our last Inner Circle Q&A for 2017. Our next Q&A will go out on Wednesday, January 3, 2018. Now is a good time to say Thanks! to the many long-time friends, associates and kindred spirits who make up the membership of this unique organization....
This will be our last Inner Circle Q&A for 2017. Our next Q&A will go out on Wednesday, January 3, 2018. Now is a good time to say Thanks! to the many long-time friends, associates and kindred spirits who make up the membership of this unique organization....
LISTEN: 
HILTON WORLDWIDE HOLDINGS $77 (New York symbol HLT; Consumer Sector; Shares outstanding: 321.0 million; Market cap: $24.7 billion; Takeover Target Rating: Low; Dividend yield 0.8%; TSINetwork Rating: Average; www.hiltonworldwide.com) owns, manages and franchises hotels under several brands, including Hilton, Waldorf Astoria, Doubletree and Embassy Suites by Hilton....
HILTON WORLDWIDE HOLDINGS $77 (New York symbol HLT; Consumer Sector; Shares outstanding: 321.0 million; Market cap: $24.7 billion; Takeover Target Rating: Low; Dividend yield 0.8%; TSINetwork Rating: Average; www.hiltonworldwide.com) owns, manages and franchises hotels under several brands, including Hilton, Waldorf Astoria, Doubletree and Embassy Suites by Hilton....
Spinoffs take place when a company decides to get rid of a portion of its asset base, possibly because it wants to focus its activities elsewhere. Usually, it’s unable to sell the assets for a price that it feels reflects their true value. Instead, the parent company sets the assets up as a separate company then hands out shares to current shareholders as a special dividend.
The parent will only spin off the unwanted subsidiary if it’s fairly confident this will pay off for shareholders in the long term, if not in the short.
On the other hand, initial public offerings (also known as IPOs) are inherently riskier than existing stocks—or spinoffs for that matter....
The parent will only spin off the unwanted subsidiary if it’s fairly confident this will pay off for shareholders in the long term, if not in the short.
On the other hand, initial public offerings (also known as IPOs) are inherently riskier than existing stocks—or spinoffs for that matter....
Wyndham Worldwide plans to spin off its hotel operations. The stock is up 53% over the last year, and for now, we see it as a hold.
But overall, we think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.
2) Companies do spinoffs when they feel now is not a good time to sell....
But overall, we think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.
2) Companies do spinoffs when they feel now is not a good time to sell....
5 tips from our TSI Takeover Target Rating system for even better results with spinoff investing