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Spinoffs

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 up over 40% since the split, while HP Enterprise has gained 25%.

Both firms are now using artificial intelligence (AI) software to cut costs and launch new products. Even so, we see better opportunities for investors interested in AI.

2 min read

Pat McKeough

Spinoffs

This new spinoff faces hurdles

VERSANT MEDIA GROUP INC. $32 is a hold. The company (Nasdaq symbol VSNT; Consumer sector; Shares outstanding: 145.8 million; Market cap: $4.7 billion; No dividend paid; Takeover Target Rating: Lowest; www.versant.com) operates a variety of cable TV channels, including MSNOW (formerly MSNBC), CNBC, USA Network and Golf Channel. It also owns several popular websites including Fandango (movie tickets) and Rotten Tomatoes (movie reviews)

Versant took its current form on January 2, 2026, when media firm Comcast Corp. (Nasdaq symbol CMCSA) spun it off as a separate firm. Investors received one share of Versant for every 25 shares of Comcast they held.

1 min read

Pat McKeough

Spinoffs

These two opt to sell instead of spin off

In some cases, companies will sell a business instead of spinning it off. That gives them cash for new investments, dividends and buybacks. Here are two recent examples.

2 min read

Pat McKeough

Spinoffs

Activist seeks a buyer for Blackline

BLACKLINE INC. $52 is a hold. The company (Nasdaq symbol BL; Manufacturing sector; Shares outstanding: 54.5 million; Market cap: $2.8 billion; No dividend paid; Takeover Target Rating: Medium; www.blackline.com) makes cloud-based accounting software for over 4,400 businesses.

BlackLine has reportedly rejected a $66.00-a-share takeover offer from German software giant SAP SE (New York symbol SAP).

1 min read

Pat McKeough

Spinoffs

Fallen retailers attract activist pressure

Activists are now targeting these two retailers, both of which continue to face challenges. We feel any increased pressure will help each firm attract more shoppers to its stores and spur its earnings. However, we see better opportunities to add to your Consumer stock holdings.

2 min read

Pat McKeough

Spinoffs

Lawsuit may limit spinoff gains

Engineering and industrial services firm KBR—spun off from Halliburton Co. in November 2006—now plans to break itself into two separate, pure-play companies.

The split should help draw more investor attention to these businesses. The solid order backlog and high-quality clientele of each company could also make them attractive takeover targets. Note, however, that a class-action lawsuit adds risk.

2 min read

Spinoffs

Spinoff Spotlight: Victoria’s Secret & Co.

VICTORIA’S SECRET & CO. $65 is a hold. The company (New York symbol VSCO; Consumer sector; Shares outstanding: 80.2 million; Market cap: $5.2 billion; No dividend paid; Takeover Target Rating: Medium; www.victoriassecretandco.com) took its current form in August 2021 when the old L Brands (New York symbol LB) became two separate firms: Victoria’s Secret (lingerie) and Bath & Body Works (personal care products). Investors received one new share of Victoria’s Secret for every three shares of L Brands they held at the time. L Brands then changed its name to Bath & Body Works.

Victoria’s Secret saw sales for the fiscal 2026 third quarter, ended November 1, 2025, rise 9.2%, to $1.47 billion from $1.35 billion a year earlier. The gain reflects a turnaround plan that focuses on improved marketing and cost cutting. Excluding unusual items, the company lost $0.27 a share (or a total of $21.6 million). Even so, that’s a big improvement over the year-earlier loss of $0.50 a share (or $39.5 million). (Note—the company typically loses money in that quarter.)

1 min read

Pat McKeough

Spinoffs

Corteva is set to build on its gains

Our analysis has identified Corteva as your #1 Spinoff Buy for 2026.

The company recently announced plans to separate its seeds business from its agricultural chemical operations and produce two publicly traded firms by the end of 2026.

Corteva has already gained an impressive 140% since the old DowDuPont spun it off in June 2019. We feel this latest move will set up shareholders for even more gains, as stock market investors tends to prefer “pure-play” firms that are easier to evaluate and compare against rival companies.

3 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of January 20, 2026

10 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, January 16, 2026

8 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.