The Successful Investor Hotline – Friday, January 18, 2013

Article Excerpt

PLEASE NOTE: Next week, Wall Street Stock Forecaster, our newsletter that focuses on the U.S. stock markets, will reveal its #1 pick for 2013. SHAWCOR LTD., $40.88, Toronto symbol SCL.A, plans to convert its class A subordinate voting (one vote per share) and class B multiple voting (10 votes per share) shares into a single class of common shares (one vote per share). The company makes sealants and coatings that keep oil and gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. Under the proposal, each class A share will become one common share. Class B shareholders will have the option of receiving 1.1 common shares or $43.43 in cash for each share they now hold. However, the company will limit the cash portion to 90% of the total compensation. At closing, ShawCor will pay a special dividend of $1.00 a share to all shareholders. Shareholders and regulators must still approve the plan, but ShawCor should…