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Spinoffs

Diversified manufacturing firm 3M completed its plan to spin off its Health Care division as an independent firm, called Solventum, on April 1, 2024. Shareholders received one share of Solventum for every four shares they held. 3M still owns 19.9% of Solventum, but plans to sell those shares over the next five years.

The spinoff will let both firms better focus on their main businesses....

2 min read

Pat McKeough

Spinoffs

Corteva is now up 100%

CORTEVA INC. $57 is a buy. The company (New York symbol CTVA; Manufacturing sector; Shares outstanding: 697.0 million; Market cap: $39.7 billion; Dividend yield: 1.1%; Takeover Target Rating: Medium; www.corteva.com) makes seeds and crop-protection chemicals....

1 min read

Pat McKeough

Spinoffs

We still like them five years after split

Like GE (see page 41), in 2019 industrial conglomerate DowDuPont broke itself into three new “pure-play” firms—DuPont, Dow and Corteva (see box). We still like their long-term prospects, and see all three as buys.

DUPONT DE NEMOURS INC. $78 is a buy. The company (New York symbol DD; Manufacturing sector; Shares outstanding: 430.0 million; Market cap: $33.5 billion; Dividend yield: 1.9%; Takeover Target Rating: Medium; www.dupont.com) makes chemicals and other materials for manufacturers in the electronics, transportation, building and construction, and healthcare industries.

DuPont continues to sell less-important businesses as it simplifies its operations....

2 min read

Pat McKeough

Spinoffs

BHP wants to merge with Anglo

BHP GROUP LTD. (ADR) $59 is a buy. This company (New York symbol BHP; Resources sector; ADRs outstanding: 2.6 billion; Market cap: $153.4 billion; Dividend yield: 5.2%; Takeover Target Rating: Medium; www.bhp.com) is one of the world’s largest producers of iron ore, copper, nickel and coal.

BHP recently offered to acquire rival mining firm Anglo American PLC (Over-the-counter symbol AAUKF) in an all-stock merger worth $42.7 billion....

1 min read

Pat McKeough

Spinoffs

Activist pressure boosts their prospects

These two pet-related firms recently settled with activist investors, which should help push up their stock prices. However, we see only one as a buy right now.

FRESHPET INC. $129 is a hold. The company (Nasdaq symbol FRPT; Consumer sector; Shares outstanding: 48.4 million; Market cap: $6.2 billion; No dividend paid; Takeover Target Rating: Medium; www.freshpet.com) makes fresh, natural food for dogs and cats.

In August 2023, Freshpet and activist investor Jana Partners announced a cooperation agreement....

2 min read

Pat McKeough

Spinoffs

South Bow spinoff remains on track

Pipeline giant TC Energy has set the terms for the upcoming spinoff of its oil pipeline business (called South Bow Corp.): investors will receive 0.2 of a South Bow share for every TC share they hold. The new shares will trade on the Toronto and New York exchanges under the “SOBO” symbol....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Telus International

TELUS INTERNATIONAL (CDA) INC. $8.69 remains a buy for aggressive investors. The company (Toronto symbol TIXT; Manufacturing sector; Shares outstanding: 275.0 million; Market cap: $2.4 billion; No dividend paid; Takeover Target Rating: Lowest; www.telusinternational.com) operates call centres on behalf of over 650 corporate clients in 32 countries....

1 min read

Pat McKeough

Spinoffs

Buy just one of these GE spinoffs now

Conglomerate General Electric has completed its plan, first announced in 2021, to split into three public companies: GE Aerospace (jet engines), GE Vernova (equipment for electrical power producers), and GE HealthCare (x-ray machines and MRI scanners).

All three of the stocks are up since the split....

3 min read

Pat McKeough

How To Invest

Q: Pat, can I get your advice on whether Robinhood Markets is a buy or not? Thank you.

A: Robinhood Markets Inc., $18.25, symbol HOOD on Nasdaq (Shares outstanding: 892.7 million; Market cap: $14.8 billion; www.robinhood.com), is an online discount brokerage whose stated mission is to “democratize finance for all.”

In the U.S., Robinhood customers can trade U.S....

3 min read

Pat McKeough

How To Invest

Q: Pat, what do you think about the prospects of Kinross Gold Corp. (symbol K) going forward? Thank you.

A: Kinross Gold Corp., $10.58, symbol K on Toronto (Shares outstanding: 1.2 billion; Market cap: $12.7 billion; www.kinross.com), is a senior gold mining company with a diverse portfolio of mines and projects.

In the U.S., the company operates two mines in Nevada (Round Mountain and Bald Mountain), and a mine (Fort Knox) and a development project (Manh Choh) in Alaska....

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.