New spinoff offers you more gains

Article Excerpt

We recommended investors buy Danaher in our very first issue (October 2017). At that time, this industry leader had just spun off its Fortive unit. Those who followed our advice have seen a market-beating gain of 57% in two years. The stock remains a buy. Danaher now aims to repeat that success with another spinoff. The company recently set up Envista, its dental equipment business, as a separate company. It then sold a portion of shares to the public. Danaher will likely hand its shareholders the remaining Envista stake in the next year or so. That new company’s pure-play focus should ultimately lead you to strong gains. As for Danaher, it still plans to complete its purchase of GE’s BioPharma business this year. Those new operations should spur its revenue, earnings—and investor returns. DANAHER CORP., $137, remains a spinoff buy. The company (New York symbol DHR; Manufacturing & Industry sector; Shares outstanding: 717.4 million; Market cap: $98.2 billion; Dividend yield: 0.5%; Takeover Target…