spinoffs

You Can See Our Spinoff Stock Portfolio For December 2023 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....

The IPO Market Has Faced Significant Turmoil in Recent Years, with Losses for Investors, Decreased Demand for Financial Institutions

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 for investors. We recommend this stock as a Power Buy.


ABBVIE INC., $149.28, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $268.7 billion; Dividend yield: 4.0%) 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 November 2023 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....

BlackBerry and Algonquin are using spinoffs and asset sales to boost shareholder value. We feel Algonquin is the better choice for your new buying, particularly as its dividend looks safe and now yields a high 7.5%.


BLACKBERRY LTD. $4.87 is a hold. The company (Toronto symbol BB; Manufacturing sector; Shares outstanding: 583.2 million; Market cap: $2.8 billion; No dividend paid; Takeover Target Rating: Medium; www.blackberry.com) quit developing smartphones in 2016 to concentrate on security software for mobile phones and self-driving cars.


The company now plans to separate its cybersecurity and Internet of Things (IoT) businesses into two independent, publicly traded companies by August 2024.


As part of the separation, it will pursue an initial public offering (IPO) for the IoT business, which includes its QNX automotive embedded software....

Danaher is one of our long-time favourites. In fact, we first recommended it in our October 2017 issue just after the spinoff of its industrial products maker Fortive Corp. (New York symbol FTV). In September 2019, we were again pleased with Danaher’s move to unlock more shareholder value with the spin off of dental equipment specialist Envista Holdings Corp....

You Can See Our Spinoff Stock Portfolio For October 2023 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....

ARAMARK CORP. $38 is a buy. The company (New York symbol ARMK; Manufacturing sector; Shares outstanding: 261.1 million; Market cap: $9.9 billion; Dividend yield: 1.2%; Takeover Target Rating: Medium; www.aramark.com) plans to spin off its uniform business as a separate, publicly traded firm called Vestis....

In the past few years, big pharmaceutical companies have spun off their consumer drug operations. That’s part of their strategy to focus on more-profitable prescription drug businesses. These two recent spinoffs have decent long-term prospects, but their shares will likely remain depressed until they cut their high debt loads.


VIATRIS INC....

CANADIAN SOLAR INC., $26.25, symbol CSIQ on Nasdaq, is one of the world’s largest manufacturers of solar photovoltaic modules and solar energy and battery storage solutions. Founded in 2001, it went public in 2006, selling shares at $15 each.

On August 17, 2023, the Ontario-based company announced it would deliver 1,200 megawatt hours of energy storage solutions to its Papago Storage project in Arizona....