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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Diversified manufacturer Honeywell recently announced that it will spin off its Advanced Materials business as a separate firm. That unit make a variety of products, ranging from body armour and pharmaceutical packaging to air-conditioning refrigerants and packaging films.
Activist investor Elliott Investment Management, which owns $5 billion of Honeywell’s shares, instead wants the company to split another way, with one of the new businesses focused on automation, energy and sustainability solutions; the other would be focused on aerospace....
Activist investor Elliott Investment Management, which owns $5 billion of Honeywell’s shares, instead wants the company to split another way, with one of the new businesses focused on automation, energy and sustainability solutions; the other would be focused on aerospace....
Agilent and Keysight are great examples of how spinoffs can deliver big returns for growth investors. In the 10 years since Agilent spun off Keysight (shareholders received one Keysight share for every two shares they held), the stock is up 220%, while Keysight has soared 420%....
You Can See Our Spinoff Stock Portfolio For November 2024 Here.
Why we like spinoffs so much
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) Spinoffs involve a lot of work and legal fees....
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We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. At the same time, over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think AbbVie—itself a spinoff—has further gains ahead. We recommend this stock as a Power Buy.
ABBVIE INC., $192.94, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $340.8 billion; Dividend yield: 3.2%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies.
Since its spinoff from Abbott Laboratories, AbbVie has depended heavily on its Humira drug to drive both its sales and earnings....
ABBVIE INC., $192.94, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $340.8 billion; Dividend yield: 3.2%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies.
Since its spinoff from Abbott Laboratories, AbbVie has depended heavily on its Humira drug to drive both its sales and earnings....
You Can See Our Spinoff Stock Portfolio For October 2024 Here.
Why we like spinoffs so much
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) Spinoffs involve a lot of work and legal fees....
Often-overlooked Trisura Group is up a whopping 647.2% since its spinoff from Brookfield and its earnings just shot up a solid 16.1% in the most-recent quarter. It’s a top pick.
MAPLE LEAF FOODS INC. $22 (www.mapleleaffoods.com) is a hold. The company plans to spin off its pork processing business as a separate firm in 2025. It raises and processes hogs and accounts for 32% of Maple Leaf’s total sales....
You Can See Our Spinoff Stock Portfolio For September 2024 Here.
Why we like spinoffs so much
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) Spinoffs involve a lot of work and legal fees....
Many spinoffs tend to move sideways immediately after becoming separate companies. Essentially, it takes time for them to overcome investor reticence to buy. That’s why we don’t yet recommend these two for your new buying.
HOWARD HUGHES HOLDINGS INC....
HOWARD HUGHES HOLDINGS INC....