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Spinoffs

We like the outlook for these two industrial firms as they move to simplify their operations. Still, we can only recommend one as a buy right now.

DUPONT DE NEMOURS INC. $85 is a buy. The company (New York symbol DD; Manufacturing sector; Shares outstanding: 430.0 million; Market cap: $36.6 billion; Dividend yield: 1.8%; Takeover Target Rating: Medium; www.dupont.com) took its current form on June 1, 2019, when it set up Corteva (its agriculture business) as a separate company (New York symbol CTVA)....

2 min read

Pat McKeough

Growth Stocks

These picks let you gain from a travel surge

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham, and Travel + Leisure should benefit from that surge. We see each as a buy.

WYNDHAM HOTELS & RESORTS, $81.95, is a #1 Power Buy for 2024. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 79.0 million; Market cap: $6.5 billion; Dividend yield: 1.9%) is the world’s largest hotel franchiser, with 885,000 rooms spread across 9,200 hotels, with 25 brands in 95 countries.

Wyndham’s revenue in the quarter ended June 30, 2024, rose 1.4%, to $367 million from $362 million a year earlier....

2 min read

Pat McKeough

Spinoffs

Activist pressures Cracker Barrel

CRACKER BARREL OLD COUNTRY STORE INC. $48 is a hold. The company (Nasdaq symbol CBRL; Consumer sector; Shares outstanding: 22.2 million; Market cap: $1.1 billion; Dividend yield: 2.1%; Takeover Target Rating: Medium; www.crackerbarrel.com) operates over 650 casual dining restaurants under the Cracker Barrel Old Country Store banner, in 44 states....

1 min read

Pat McKeough

Growth Stocks

Adobe launches its AI-powered text-to-video tool

OpenAI’s demonstration of its Sora AI-based video generation tools has spurred fears among investors that Adobe could be disrupted by the new technology and so lag behind. But Adobe has just released Firefly Video Model as a new entry in the field, and it is targeted at safe, commercial use.

ADOBE INC., $502.54, is a #1 Power Buy for your 2024 investing. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares outstanding: 440.2 million; Market cap: $221.2 billion; No dividends paid) has now launched its Firefly Video Model....

1 min read

Pat McKeough

Spinoffs

Topgolf plans split for pure-play growth

In March 2021, golf equipment maker Callaway Golf and driving range operator Topgolf merged in an all-stock transaction valued at $2.6 billion. Topgolf shareholders received 90 million Callaway shares. In 2022, the company was renamed Topgolf Callaway Brands. It also changed its stock-exchange symbol from “ELY” to “MODG.”

It now seems that the benefits of the merger have not materialized....

2 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:

ELECTRONIC ARTS, $145.04, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares outstanding: 264.2 million; Market cap: $38.3 billion; Dividend yield: 0.5%) recently outlined plans for two of the company’s most important games: “The Sims” and “Battlefield.”

The company’s long-running The Sims franchise began as a virtual city-building game 24 years ago....

1 min read

Pat McKeough

Mining Stocks

IAMGold reassures investors

IAMGOLD, $6.99, is a buy. The miner (Toronto symbol IMG; TSINetwork Rating: Speculative) (www.iamgold.com; Shares outstanding: 570.3 million; Market cap: $4.0 billion; No dividends paid) has bounced back from a recent drop that came after Burkina Faso’s President Ibrahim Traore mentioned during a radio interview on October....

1 min read

Pat McKeough

Mining Stocks

These two gold stocks can rise even higher

Whatever the near-term outlook for gold, we think top-quality gold stocks like Alamos and Lundin—both hitting all-time highs—remain buys. That’s in part because of their prospects for increased production and cash flow—regardless of precious metal prices.

ALAMOS GOLD INC., $27.46, is a buy. Through the shares (Toronto symbol AGI; TSINetwork Rating: Extra Risk) (www.alamosgold.com; Shares outstanding: 419.7 million; Market cap: $11.5 billion; Dividend yield: 0.5%) investors tap into the company’s Mulatos mine in Mexico as well as its Young-Davidson and Island mines in northern Ontario.

As well, the gold miner recently completed the acquisition of Argonaut Gold and its Magino mine in northern Ontario for $325 million U.S....

2 min read

Pat McKeough

Spinoffs

Fortive investors get a second spinoff

In July 2016, Danaher Corp. (New York symbol DHR) combined its Test & Measurement business with its Industrial Technologies operations to create Fortive. It then spun off the firm, and investors received one Fortive share for every two Danaher shares they held.

In October 2020, Fortive spun off its automotive-related business as Vontier....

3 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:

SONOS INC., $12.38, (Nasdaq symbol SONO; TSINetwork Rating: Extra Risk) (sonos.com; Shares o/s: 122.9 million; Market cap: $1.5 billion; No dividends paid) is one of the world’s biggest manufacturers of audio sound systems.

Sonos also produces its own software....

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.