spinoffs
You Can See Our Spinoff Stock Portfolio For June 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....
You Can See Our Spinoff Stock Portfolio For May 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....
Corteva shares offer investors a number of pluses: Not only is the company at the forefront of key agricultural trends, the stock is a spinoff. 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 Corteva has further gains ahead for investors....
You Can See Our Spinoff Stock Portfolio For April 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....
A key reason behind the success of spinoffs is that investors tend to prefer “pure-play” businesses that are easier to analyze and value.
A great example of this is trucking firm XPO, which has spun off two of its businesses in the past three years....
On April 3, 2020, aerospace and military equipment maker RTX Corp. (formerly called Raytheon Technologies, New York symbol RTX) spun off its Otis (elevators) and Carrier (heating and air conditioning equipment) businesses. For each UTX share they held, investors received 0.5 of a share in Otis and 1 share in Carrier.
This is a great example of how spinoffs can deliver big returns: since the spinoff, Carrier has shot up about 300% while Otis has gained 118%.
Both companies are now using acquisitions to expand their main businesses....
Here are two small-cap firms using acquisitions and spinoffs to improve their prospects. These moves should give them more room to increase their dividends.
LEON’S FURNITURE LTD. $21 is a buy. The retailer (Toronto symbol LNF; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 68.0 million; Market cap: $1.4 billion; Dividend yield: 3.4%; Dividend Sustainability Rating: Average; www.leons.ca) operates 303 stores that sell furniture and home appliances, mainly under the Leon’s, The Brick, and Appliance Canada banners.
With the January 2024 payment, the company raised your quarterly dividend by 12.5%, to $0.18 a share from $0.16....
LEON’S FURNITURE LTD. $21 is a buy. The retailer (Toronto symbol LNF; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 68.0 million; Market cap: $1.4 billion; Dividend yield: 3.4%; Dividend Sustainability Rating: Average; www.leons.ca) operates 303 stores that sell furniture and home appliances, mainly under the Leon’s, The Brick, and Appliance Canada banners.
With the January 2024 payment, the company raised your quarterly dividend by 12.5%, to $0.18 a share from $0.16....
The term “investment synergy” entered common investor use during the takeover craze of the 1960s. Keep reading to learn more.
You Can See Our Spinoff Stock Portfolio For March 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 597% since its spinoff from Brookfield and its earnings just shot up a whopping 50.2% in the most-recent quarter. It’s a top pick.