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Spinoffs

VISTA OUTDOOR INC. $32 is a hold. The company (New York symbol VSTO; Consumer sector; Shares outstanding: 58.1 million; Market cap: $1.9 billion; No dividends paid; Takeover Target Rating: Medium; www.vistaoutdoor.com) is a leading maker of consumer products for the outdoor sports and recreation markets....

1 min read

Pat McKeough

Spinoffs

International giants plan to simplify

These two global leaders now plan to shrink their operations. That’s good news for investors, as stock markets tend to prefer—and reward—companies with easy-to-understand businesses rather than those with complex conglomerate structures. Even so, we prefer Unilever over Sony for your new buying.

UNILEVER PLC (ADR) $47 is a spinoff buy. The company (New York symbol UL; Consumer sector; ADRs outstanding: 2.5 billion; Market cap: $117.5 billion; Dividend yield: 4.0%; Takeover Target Rating: Medium; www.unilever.com) is one of the world’s largest makers of branded and packaged consumer goods....

2 min read

Pat McKeough

Spinoffs

Icahn pushes for spinoffs at AEP

AMERICAN ELECTRIC POWER CO. INC. $81 is a hold. Formed in 1906, this Columbus, Ohio-based company (New York symbol AEP; Utilities sector; Shares outstanding: 526.6 million; Market cap: $42.7 billion; Dividend yield: 4.4%; Takeover Target Rating: Medium; www.aep.com) generates and distributes electricity to 5.6 million customers in 11 U.S....

1 min read

Pat McKeough

Spinoffs

Activist pressure lifts their stock prices

These two stocks have moved up recently in response to activist pressure. However, we feel Disney is in a better position to keep moving higher for its investors.

WALT DISNEY CO. $113 is still a buy. The company (New York symbol DIS; Consumer sector; Shares outstanding: 1.8 billion; Market cap: $203.4 billion; Dividend yield: 0.8%; Takeover Target Rating: Medium; www.thewaltdisneycompany.com) is an entertainment and media conglomerate headquartered in Burbank, California....

2 min read

Pat McKeough

Spinoffs

Breakup creates more-nimble players

On October 3, 2023, the old Kellogg Company split into two independent firms: WK Kellogg and Kellanova.

Investors received one WK Kellogg share for every four Kellogg shares they held. The former parent then changed its name to Kellanova....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Alamos Gold

ALAMOS GOLD INC. $21 is a buy. The gold miner (Toronto symbol AGI; Resources sector; Shares outstanding: 397.8 million; Market cap: $8.4 billion; Dividend yield: 0.7%; Takeover Target Rating: Medium; www.alamosgold.com) is now buying Argonaut Gold Inc....

1 min read

Pat McKeough

Spinoffs

These two still have long-term appeal

On November 9, 2016, foodmaker Conagra Brands spun off its potato-processing operations as Lamb Weston. Investors received one share of the new firm for every three Conagra shares they held.

Just in April, Lamb Weston’s shares dropped 20% after the company reported disappointing quarterly results....

4 min read

Pat McKeough

How To Invest

Q: Hi, Pat. Thanks for all your advice. It has been much appreciated. Can I have your opinion on Allied Gold Corp. (AAUC), please. Thanks.

A: Allied Gold Corp., $3.79, symbol AAUC on Toronto (Shares outstanding: 250.7 million; Market cap: $985.4 million; www.alliedgold.com), is a Canadian-based gold producer with three operating mines, a significant gold development project and exploration properties throughout Africa.

The company’s principal properties are the Sadiola gold mine in the Kayes region of West Mali (80% ownership), the Bonikro (90% ownership) and Agbaou (85% ownership) gold mines in Cote d’Ivoire, and the Kurmuk gold development project in Ethiopia (100% ownership).

Allied Gold was founded in 2011 as a private company....

2 min read

Pat McKeough

How To Invest

Q: Pat, can I have a recommendation on Bridgemarq Real Estate Services? Thank you!

A: Bridgemarq Real Estate Services Inc., $13.62, symbol BRE on Toronto (Shares outstanding: 9.5 million; Market cap: $128.2 million; www.bridgemarq.com), is a leading provider of services to residential real estate brokers and a network of 20,529 real estate agents.

The company operates in Canada under the Royal LePage, Via Capitale, and Johnston & Daniel brands....

2 min read

Pat McKeough

How To Invest

Q: Good day, Pat and company. I would like to know your thoughts and recommendations on Emerson Electric. Is this a stock worth holding for potential long-term gains? Thanks very much!

A: Emerson Electric Co., $110.83, symbol EMR on New York, (Shares outstanding: 571.7 million; Market cap: $63.9 billion; www.emerson.com), is an industrial company with two main operating segments: Intelligent Devices (76% of revenue) and Software & Control (24%).

The Intelligent Devices division has four segments:

1) Final Control is a global provider of control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries.

2) The Measurement & Analytical segment is a leading supplier of intelligent instrumentation measuring the physical properties of liquids and gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame.

3) The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software used in discrete industries (specialty manufacturers).

4) The Safety & Productivity segment offers tools for professionals and homeowners.

The Software & Control division has three segments:

1) The Control Systems & Software segment provides control systems and software that manage plant processes by collecting and analyzing information from measurement devices in the plant and using that information to adjust valves, pumps, motors, drives and other control hardware for maximum efficiency and safety.

2) AspenTech is a global leader in asset optimization software that lets industrial manufacturers design and maintain their operations at maximum performance.

3) Test & Measurement....

4 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.