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Growth Stocks

Here’s our Power Recommendation Portfolio for October 2024

You Can See Our Current Power Recommendations For October 2024 Here.

Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now....

1 min read

Pat McKeough

Spinoffs

Here’s our Spinoff Stock Portfolio for October 2024

You Can See Our Spinoff Stock Portfolio For October 2024 Here.

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....

1 min read

Pat McKeough

Spinoffs

Newsmax plans to go public

NEWSMAX INC. has filed paperwork with U.S. regulators for an initial public offering (IPO) of common shares. The shares will trade on New York under the symbol NMAX.

Based in Florida, the company operates a conservative-focused cable TV news channel, as well as online portals....

1 min read

Pat McKeough

Spinoffs

Keep our stock updates top of mind

NORDSTROM INC. $22.56 is a hold. The retailer (New York symbol JWN; Consumer sector; Shares outstanding: 164.2 million; Market cap: $3.7 billion; Dividend yield: 3.4%; Takeover Target Rating: Highest; www.nordstrom.com) owns and operates over 370 stores in the U.S....

2 min read

Pat McKeough

Spinoffs

These tech picks are worthwhile holds

On November 1, 2015, the old Hewlett-Packard Co. split into two firms—HP Inc. and Hewlett-Packard Enterprise. For every share they held in the old HP, shareholders received one share in each of the new companies.

HP is now up over 150% since the split, while HP Enterprise has gained just 7%....

2 min read

Pat McKeough

Spinoffs

Kenvue looks pricey

KENVUE INC. $23 is a hold. The company (New York symbol KVUE; Consumer sector; Shares outstanding: 1.9 billion; Market cap: $43.7 billion; Dividend yield: 3.6%; Takeover Target Rating: Medium; www.kenvue.com) makes a variety of over-the-counter drugs and health products, including Tylenol, Band-Aid and Listerine.

In May 2023, medical products giant Johnson & Johnson sold shares in Kenvue to the public at $22.00 a share....

1 min read

Pat McKeough

Spinoffs

Medical spinoffs down but not out

These three medical products makers (including Kenvue, see box) have struggled as independent firms. While all three have solid prospects, embecta is the only one we see as a buy right now.

EMBECTA CORP. $16 is a spinoff buy. The company (Nasdaq symbol EMBC; Manufacturing & Industry sector; Shares outstanding: 57.3 million; Market cap: $916.8 million; Dividend yield: 3.8%; Takeover Target Rating: Medium; www.embecta.com) took its current form in April 2022 when Becton Dickinson & Co....

2 min read

Pat McKeough

Spinoffs

Big acquisition hurt this stock

FORWARD AIR CORP. $36 is a hold. The Tennessee-based company (Nasdaq symbol FWRD; Manufacturing & Industry sector; Shares outstanding: 27.7 million; Market cap: $997.2 million; Dividend yield: 2.7%; Takeover Target Rating: Medium; www.forwardair.com) provides expedited air and ground freight transportation services.

The stock is now down about 50% since January 2024 following the company’s $3.2 billion purchase of Omni Logistics, which helps businesses manage their supply chains....

1 min read

Pat McKeough

Spinoffs

These targets will likely resist demands

We keep an eye on activist investors, as they tend to look for the same things we do—companies with undervalued assets that they can sell or spin off to improve shareholder value. Two recent targets, Kinaxis and News Corp., have attractive assets. However, they will probably resist activist demands, which could hurt their stock prices.

KINAXIS INC....

2 min read

Pat McKeough

Spinoffs

Spinoff unlocked value at both firms

On May 26, 2023, auto parts maker Cummins sold 19.5% of its filtration-products business, Atmus, to the public at $19.50 a share. On March 18, 2024, Cummins let its shareholders swap their holdings for its remaining 80.5% stake. As a result, investors exchanged 5.57 million Cummins shares for 67.05 million Atmus shares.

So far, Cummins is up over 40% since the IPO, while Atmus has gained 67%....

2 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.