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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In late 2016, three of our long-time recommendations (Alcoa, Conagra and Yum Brands) each set up a part of its business as a separate company. Each then handed its investors shares in the new company.
Studies have shown that these new firms (called spinoffs) and their former parents tend to outperform groups of comparable stocks for several years....
Studies have shown that these new firms (called spinoffs) and their former parents tend to outperform groups of comparable stocks for several years....
PROCTER & GAMBLE CO. $91 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $245.7 billion; Price-to-sales ratio: 3.6; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.pg.com) is one of the world’s largest makers of household and personal-care goods....
FIRSTSERVICE CORP. $65.03 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.7 million; Market cap: $2.3 billion; Dividend yield: 0.9%) set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015.
Since the spinoff, FirstService has carried on with its residential property management and its commercial and residential property improvement services.
In the third quarter, ended September 30, 2016, the company’s revenue rose 17.0%, to $409.1 million from $349.5 million a year earlier (all figures except share price in U.S....
Since the spinoff, FirstService has carried on with its residential property management and its commercial and residential property improvement services.
In the third quarter, ended September 30, 2016, the company’s revenue rose 17.0%, to $409.1 million from $349.5 million a year earlier (all figures except share price in U.S....
Here are our best tips and strategies for becoming a successful stock investor
We’ve had great success over the years in picking stocks with underappreciated assets. ConAgra, a long-time favourite, is a prime example. It has just handed out shares in its Lamb Weston subsidiary to its investors. Parents and spinoffs tend to outperform comparable stocks....
TEGNA INC. $22 (New York symbol TGNA; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 214.3 million; Market cap: $4.7 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.5%; TSINetwork Rating: Average; www.tegna.com) owns 46 TV stations and several popular websites, including Cars.com (car sales and vehicle information), CareerBuilder (job search), Cofactor (advertising services) and G/O Digital (website design)....
FIRSTSERVICE CORP. $63.94 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.7 million; Market cap: $2.3 billion; Dividend yield: 0.9%) set up its commercial real estate business, Colliers International Group, as a separate company on June 2, 2015....
FIRSTSERVICE CORP. $63.94 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.7 million; Market cap: $2.3 billion; Dividend yield: 0.9%) set up its commercial real estate business, Colliers International Group, as a separate company on June 2, 2015....
Discover how to make the best stock picks—including growth stocks, value stocks and income stocks
We advise investors to diversify their Finance sector holdings with non-bank stocks such as the four we analyze below. All are leaders in their niche fields, which helps cut their risk. Three are also spinoffs from larger firms. That has spurred their share prices....