We see better spinoffs out there for you

Article Excerpt

Investors in this U.S. gunmaker have seen their shares plummet 70% in the past three years. That’s partly because gun sales tend to increase when owners expect higher regulations, but the pro-gun policies of the Trump administration have dampened those fears. As well, mass shootings have prompted big retail chains like Walmart to scale back the guns and ammunition they carry in their stores. In response to those factors, American Outdoor Brands (which changed its name from Smith & Wesson in 2017 to reflect its outdoor products and accessories) plans to spin off its firearms business. While the formation of two “pure-play” companies should help unlock value for investors, both businesses will continue to face challenges once they become separate firms. While we continue to believe in the power of spinoffs to lift your returns, we see better options out there for your new buying. Agilent, on page 1, is a prime example. AMERICAN OUTDOOR BRANDS $9.14 is okay for you to hold. The company (Nasdaq…