More ways you can profit

Article Excerpt

As we often remind our readers, spinoffs are the closest you can get to a sure thing in investing. According to several academic studies, spinoffs benefit not only the new company but the former parent as well. We also caution investors that these benefits don’t arrive immediately. A good example is VF Corp., which spun off its Kontoor Brands business last year. VF shares have moved down lately due to the coronavirus outbreak in China. However, we still like the company’s outlook, particularly as it may be planning a second spinoff for investors. Like most new spinoffs, Kontoor has moved sideways, but still offers you strong prospects. We also draw your attention to XPO Logistics, which is also planning to sell or spin off some of its operations. Even if it opts for a sale, the smaller XPO would become a highly attractive takeover target. Drug distributor McKesson also just announced the terms of a plan to hand out its shares in medical software specialist Change Healthcare. Unlike a straight…

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