Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Thursday, April 2, 2015

Article Excerpt

PLEASE NOTE: Our next Hotlines will go out on Friday, April 10, 2015. PHILIPS ELECTRONICS N.V. ADRs, $29.30, New York symbol PHG, is selling most of its light emitting diode (LED) components and automotive lighting division (which is changing its name to Lumileds) to private equity firm GO Scale Capital. Under the deal, Philips will sell 80.1% of Lumileds for $2.9 billion. That’s equal to 11% of its $26.6-billion market cap (or the value of all of its outstanding shares). Philips expects to complete the sale in the third quarter of 2015. The deal excludes Philips’ lighting solutions business, which designs and builds LED systems for cities, arenas and other large-scale uses. The company still plans to spin this business off as a separate company, probably by the end of 2015. The remaining firm would focus on health care products, including X-ray scanners, ultrasound systems and defibrillators, as well as consumer goods like electric shavers and coffee makers. Philips is a buy. Philips was recently covered…