Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, March 22, 2019

Article Excerpt

PENTAIR PLC, $42.26, symbol PNR on New York, is a manufacturing company that sells to businesses in the food, water and energy markets. On April 30, 2018, Pentair completed the spinoff of its electrical unit, nVent Electric plc (see next Hotline item). Investors received one nVent share for each Pentair share they held. Following the spinoff, Pentair now focuses on its water-related businesses. That unit makes commercial filtration, purification and desalination systems. In the three months ended December 31, 2018, Pentair’s overall revenue rose 2.7%, to $740.5 million from $720.8 million, a year earlier. The company earned $104.6 million in the latest quarter. That’s up 9.1% from $95.9 million. Per-share earnings rose 15.4%, to $0.60 from $0.52, on fewer shares outstanding. Pentair stock trades at 16.6 times this year’s forecast earnings of $2.55 a share. The stock yields 1.7%. OUR RECOMMENDATION: Pentair plc is a buy. Pentair recent coverage May 2018 issue January 2018 issue NVENT ELECTRIC PLC, $25.77, symbol NVT on New York, makes stainless steel,…