Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, September 20, 2013

Article Excerpt

AGILENT TECHNOLOGIES INC., $52.15, New York symbol A, plans to break itself into two publicly traded companies. The news caused the stock to rise 8% this week. One business will keep the Agilent name and focus on testing equipment for medical-research labs. This company’s revenue will be about $3.9 billion in its 2013 fiscal year, which ends October 31, 2013. It will pay a dividend comparable to Agilent’s current 0.9% yield. The second firm will make testing systems for improving electronics, such as cellphones and computer equipment. Its projected fiscal 2013 revenue is $2.9 billion. This company will not pay a dividend, at least initially. Agilent will hand out shares in the electronics-testing business to its current shareholders. Investors will not be liable for capital gains taxes on their new shares until they sell them. Shareholders and regulators must approve the breakup, but the company aims to complete it by the end of its 2014 fiscal year. Demand for electronics-testing gear is highly cyclical,…