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Spinoffs

HOWARD HUGHES HOLDINGS INC. $76 is a hold. The company (New York symbol HHH; Manufacturing sector; Shares outstanding: 50.1 million; Market cap: $3.8 billion; No dividend paid; Takeover Target Rating: Medium; www.howardhughes.com) was originally part of billionaire businessman Howard Hughes’ real estate holdings....

1 min read

Pat McKeough

Spinoffs

These two spinoffs still have appeal

Shares of these two firms have drifted lower since their spinoffs. We still like their long-term prospects, but Edgewell is the better choice for your new buying.

HENRY SCHEIN INC. $74 is a hold. The company (Nasdaq symbol HSIC; Manufacturing & Industry sector; Shares outstanding: 136.1 million; Market cap: $10.1 billion; No dividend paid; Takeover Target Rating: Medium; www.henryschein.com) is the world’s largest provider of health-care products and services to doctors and dentists....

2 min read

Pat McKeough

Spinoffs

Elliott’s attention should lift Match

MATCH GROUP INC. $36 is a hold. This company (Nasdaq symbol MTCH; Consumer Sector; Shares outstanding: 268.9 million; Market cap: $9.7 billion; No dividend paid; Takeover Target Rating: Medium; www.mtch.com) owns dating websites Tinder, Match, Hinge and OK-Cupid....

1 min read

Pat McKeough

Spinoffs

Keep holding these three targets

The shares of these three stocks (including Match Group—see box) are down sharply in the past few years. That has attracted the attention of activist investors, who believe there are ways to boost those prices. However, we see better opportunities elsewhere.

ETSY INC....

2 min read

Pat McKeough

Spinoffs

We prefer the outlook for J&J

Medical products giant Johnson & Johnson first sold shares in its consumer drug business, Kenvue, to the public in May 2023 at $22.00 a share. Johnson & Johnson later let its own shareholders exchange JNJ shares for Kenvue shares at a 7% discount. The company held onto 9.5% of Kenvue, which it will likely sell in the next few months.

So far, Johnson & Johnson shares are down 5%, while Kenvue is down 14%....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: VF Corp.

VF CORP. $17 is still a buy, but only for aggressive investors. The company (New York symbol VFC; Consumer sector; Shares outstanding: 388.8 million; Market cap: $6.6 billion; Dividend yield: 2.1%; Takeover Target Rating: Medium; www.vfc.com) is one of the world’s largest apparel suppliers and a leader in the outdoor, sportswear, and workwear markets....

1 min read

Pat McKeough

Spinoffs

Spinoff should take Baxter higher

Shares of medical device maker Baxter have dropped 7% in the past six months. The decline reflects investor fears that new GLP-1 diabetes drugs, such as Ozempic, will hurt demand for Baxter’s kidney dialysis equipment (diabetes contributes to kidney disease)....

3 min read

Pat McKeough

How To Invest

Q: What do you think of me holding the BMO Low Volatility Canadian Equity ETF to lower the overall volatility of my portfolio? Thanks for your advice!

A: The BMO Low Volatility Canadian Equity ETF, $41.48, symbol ZLB on Toronto (Units outstanding: 81.2 million; Market cap: $3.4 billion; www.etfs.bmo.com), provides exposure to a portfolio of Canadian stocks with an overall low beta weighting (more on beta below)....

2 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of February 13, 2024

As we’ve often pointed out, IPOs (initial public offerings) tend to come to market when it’s a good time for the company or its insiders to sell. That may not be, and often isn’t, a good time for you to buy.

One common problem is that the IPO sales process drums up a temporary wave of buying that can push up the stock’s price....

11 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, February 9, 2024

LIVERAMP HOLDINGS INC., $38.85, symbol RAMP on New York helps organizations better use customer data across different channels and devices to improve user experience.

As of September 30, 2023, the company had 895 subscription clients, with 99 of them generating more than $1 million in revenue annually....

10 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.