Q: Hello, Pat. What is your opinion on holding a Canadian-focused small-/mid-cap fund such as the Fidelity Special Situations Fund. Do you think it’s a good idea to hold more aggressive Canadian small and mid-cap stocks?

A: We generally feel that most investors should hold the bulk of their investment portfolios in conservative securities from well-established companies. This means holding a total of 15 to 25 well-established, dividend-paying stocks, chosen mainly from our “Average” or higher ratings, and spreading your holdings… Read More

A new long-term growth strategy fuels McDonald’s

A new long-term growth strategy fuels McDonald’s

Earnings should continue to rise as the global economy expands and the company’s three-pronged expansion plans bear fruit.

The firm recently announced that it’s considering selling or spinning off part of its artificial intelligence firm, which could prompt additional spinoffs to unlock more value.

In the meantime,… Read More

Profit from IBM’s spinoff opportunity

Profit from IBM’s spinoff opportunity

Improved sales led to a 0.3% revenue bump for this company during the most-recent quarter. It also beat the consensus earnings estimate.

A recent spinoff offered its investors an interesting opportunity going forward.

Meanwhile the stock trades at just 11.5 times the company’s 2022 earnings forecast.


Q: Hi, Pat. I’d like to know if it’s best to buy IBM stock before the Kyndryl spinoff? Alternatively, should I wait until after the spinoff?

A: IBM Corp., $141.05, symbol IBM on New York (Shares outstanding: 896.3 million; Market cap: $127.6 billion; www.ibm.com), recently announced more details regarding the spinoff the Managed Infrastructure Services unit of its Global Technology Services operations. That legacy business helps corporate and government clients manage… Read More