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Why we like spinoffs so much

We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.

2) Spinoffs involve a lot of work and legal fees. The parent will only spin off the unwanted subsidiary if it can’t sell the stock for what it feels it’s worth.

1 min read

Pat McKeough

Spinoffs

Severe weather adds to its risk

SLIDE INSURANCE HOLDINGS INC. $19 is a hold. The company (Nasdaq symbol SLDE; Finance sector; Shares outstanding: 128.5 million; Market cap: $2.4 billion; No dividends paid; Takeover Target Rating: Medium; www.slideinsurance.com) provides property and causality insurance policies to property owners in states along the Atlantic seaboard. Florida accounts for 99.5% of its policies.

On June 18, 2025, Slide completed an initial public offering of 20.0 million shares at $19.00 each. The stock immediately jumped 24%, but has since dropped back to the offering price.

1 min read

Pat McKeough

Spinoffs

Let our stock updates help direct you

MDA SPACE LTD. $41 is a hold. The company (Toronto symbol MDA; Manufacturing sector; Shares outstanding: 122.7 million; Market cap: $5.0 billion; No dividend paid; Takeover Target Rating: Medium; www.mda.space) makes advanced technology, such as robotics, satellite systems, and geospatial intelligence, for the space industry.

In April 2021, MDA began trading on the Toronto exchange following its IPO at $14 a share.

2 min read

Pat McKeough

Spinoffs

Two ways to profit from a travel rebound

On June 4, 2018, Wyndham Worldwide (old New York symbol WYN) split into two new companies. For every WYN share investors held, they received one share each of the new companies—Wyndham Hotels and Resorts, and Wyndham Destinations (now called Travel + Leisure).

Thanks to rebounding travel volumes following the COVID-19 pandemic, Wyndham Hotels is up over 30% since the split. Investors will also benefit from the company’s new focus on collecting fees for branding and franchising. In 2023, it got out of the less-profitable business of managing properties on behalf of owners.

Travel + Leisure is up just 16% since the split. However, the company continues to shift from operating timeshare properties to a multi-branded enterprise focused on leisure travel. That cuts its risk, and should drive the stock higher.

2 min read

Pat McKeough

Spinoffs

The Topgolf split is still on track

TOPGOLF CALLAWAY BRANDS CORP. $8.85 is a hold. The company (New York symbol MODG; Manufacturing & Industry sector; Shares outstanding: 183.8 million; Market cap: $1.6 billion; No dividend paid; Takeover Target Rating: Medium; www.callawaygolf.com) manufactures golf clubs, balls, and apparel. Brands include Callaway, TravisMathew, and Jack Wolfskin and Odyssey. It also operates driving ranges with a party atmosphere by featuring food, drinks and electronic games.

The company still plans to separate the two businesses in the second half of 2025. It has not yet announced the terms of the transaction, whether it will spin off or sell of the Topgolf (driving range) business.

1 min read

Pat McKeough

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Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.