There’s more beyond your 187% gain

Article Excerpt

We often remind our readers that spinoffs are a great way for companies to unlock hidden value. A good example is eBay’s move in 2015 to set up its payment-processing business, PayPal, as a separate company. That spinoff has worked out very well for PayPal shareholders, who have enjoyed a huge 187% gain since the split. While eBay’s shares have remained in a narrow range, we feel this former parent is poised to break out in the next few years as it unlocks more hidden value for investors. In addition to spinoff benefits, both companies stand to gain as more people shop on the Internet instead of at brick-and-mortar stores. Both eBay and PayPal are well positioned to help you profit from this trend—in the U.S. but also globally. EBAY INC. $37 is a buy. The stock (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 796.1 million; Market cap: $29.5 billion; Price to-sales ratio: 2.7; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.ebay.com) gives…

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