LKQ CORP. $39 is a hold. The company (Nasdaq symbol LKQ; Manufacturing sector; Shares outstanding: 260.0 million; Market cap: $10.1 billion; Dividend yield: 3.1%; Takeover Target Rating: Medium; www.lkqcorp.com) sells replacement parts for cars and light trucks in North America and Europe.


LKQ stands for “Like, Kind & Quality.” That’s a term for recycled or refurbished replacement parts that are acceptable to insurers in auto claims.


LKQ has now placed two nominees, one each from activist investors Ancora Catalyst and Engine Capital, on its board of directors....

We pay close attention to activist investors, as they tend to target undervalued companies that could boost their value with asset sales or spinoffs. However, we see better opportunities than these three activist targets (including box).


UBER TECHNOLOGIES INC....

The shares of embecta are now down over 60% since Becton Dickinson (see page 17) spun it off as a separate firm in April 2022.


That decline is largely due to fears that new GLP-1 weight loss drugs, such as Ozempic, will cut demand from diabetics (many of whom are overweight) for embecta’s insulin products.


The company is now re-focusing its businesses, including discontinuing an insulin patch product that would have limited commercial viability....

TC ENERGY CORP. $65 is a buy. The company (Toronto symbol TRP; Utilities sector; Shares outstanding: 1.04 billion; Market cap: $67.6 billion; Dividend yield: 5.2%; Takeover Target Rating: Medium; www.tcenergy.com) spun off its oil pipeline business as a separate company called South Bow Corp....

After many years of expanding through acquisitions—20 purchases since 2020—medical device maker Becton Dickinson is now narrowing its focus through spinoffs.


In April 2022, the company spun off its Diabetes Care business as embecta (see page 19)....

A: If you take account of your own financial and personal circumstances and temperament, and if you invest as we advise (diversifying across most if not all of the five main economic sectors, while confining your investments mainly to well-established companies), you will automatically buy some growth stocks and some value stocks; you will also automatically buy some small-company stocks and some big-company stocks....

Finning International’s shares have gained over 197% since the COVID-19 pandemic, as governments invested in new public infrastructure projects. That has increased demand for its construction equipment. New mining projects in Canada and South America have also spurred its growth.

The company’s customers operate in cyclical industries, which adds to its risk....

INTACT FINANCIAL CORP., $288.21, is a buy. The stock (symbol IFC on Toronto) offers investors exposure to Canada’s largest provider of property and casualty insurance. Intact insures more than five million individuals and businesses. Its major brands are Intact Insurance, Canada BrokerLink and belairdirect.

In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S....

CORNING INC., $52.44, symbol GLW on New York, is a leader in materials science, specializing in the production of glass, ceramics, and optical fibre. The company has over 52,000 employees worldwide and manufactures products at 124 plants in 15 countries.

Corning operates in five segments: Optical Communications (35% of sales), Display Technologies (25%), Specialty Materials (13%), Environmental Technologies (10%), and Life Sciences (6% of sales)....

MCDONALD’S CORP., $308.55, New York symbol MCD, is a buy.

This fast-food giant is the world’s largest fast-food chain with over 43,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries.

The company reported lower-than-expected revenue for its latest quarter, mainly due to a drop in traffic at its U.S....