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You should remain wary of stocks that attract broker/media attention because of high-profile products or services and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
ALARIS EQUITY PARTNERS INCOME TRUST, $15.92, (Toronto symbol AD.UN; TSI Rating: Extra Risk) (Shares outstanding: 45.5 million; Market cap: $724.3 million; Dividend yield: 8.5%) lends money to its partners—private businesses—in exchange for distributions, dividends or interest....
Canada legalized cannabis over five years ago. While demand has been steady, stiff competition has cut selling prices significantly. Meanwhile, advertising restrictions and plain packaging rules make it hard to build brands that win customer loyalty. Still, we think some companies have a distinct edge—including their prospects for added sales in the U.S....
GOODYEAR TIRE & RUBBER, $14.53, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares outstanding: 283.5 million; Market cap: $4.1 billion; No dividends paid) is now exploring strategic alternatives for some of its operating units to streamline its product portfolio—as part of its agreement with activist investor Elliott Management.
Goodyear’s goal is to raise more than $2 billion in proceeds....
Goodyear’s goal is to raise more than $2 billion in proceeds....
Swiss pharmaceutical giant Novartis spun off Alcon in 2019. As we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of the market’s rise and fall. Moreover, trends now underway—as well as Alcon’s strong position in its key markets—will drive future gains for this Power Buy.
ALCON, $75.04, is a buy. The firm (New York symbol ALC; TSINetwork Rating: Extra Risk) (www.alcon.com; Shares outstanding: 499.7 million; Market cap: $37.1 billion; Dividend yield 0.3%) is the world’s biggest eye-care company....
Merck continues to make savvy acquisitions to expand its pipeline and stay ahead of rivals. Pharma inneuroscience is a promising field, and Merck’s latest purchase should accelerates its growth in this area.
MERCK & CO. INC., $106.34, is a buy. The drugmaker (New York symbol MRK; TSINetwork Rating: Above Average) (www.merck.comwww.merck.com; Shares outstanding: 2.5 billion; Market cap: $271.4 billion; Dividend yield: 3.0%) has agreed to buy Caraway Therapeutics for up to $610 million.
Launched five years ago, Caraway specializes in studying the waste disposal mechanisms of cells....
MERCK & CO. INC., $106.34, is a buy. The drugmaker (New York symbol MRK; TSINetwork Rating: Above Average) (www.merck.comwww.merck.com; Shares outstanding: 2.5 billion; Market cap: $271.4 billion; Dividend yield: 3.0%) has agreed to buy Caraway Therapeutics for up to $610 million.
Launched five years ago, Caraway specializes in studying the waste disposal mechanisms of cells....
ALIMENTATION COUCHE-TARD, $77.28, is a buy. This retailer (Toronto symbol ATD; TSINetwork Rating: Average) (couchetard.com; Shares outstanding: 963.6 million; Market cap: $74.5 billion; Dividend yield: 0.9%) continues to boost your returns through dividends and share buybacks.
The company keeps aggressively repurchasing its shares, which helps increase your share price....
The company keeps aggressively repurchasing its shares, which helps increase your share price....
ATS Corp., based in Cambridge, Ontario, is a new pick for subscribers to Power Growth Investor. The company is at the forefront of the rapidly expanding market for factory automation technology. Part of that is its big move into EV battery assembly systems, as well as industries where reliability and system integrity are key such as food and beverage, and life sciences....
You Can See Our Spinoff Stock Portfolio For January 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....
MAPLEBEAR INC. $25 is a hold. The company, (Nasdaq symbol CART; Manufacturing sector; Shares outstanding: 280.2 million; Market cap: $7.0 billion; No dividend paid; Takeover Target Rating: Lowest; www.instacart.com), does business as Instacart, operating an online grocery delivery and pick-up service in the U.S....
TOURMALINE OIL CORP. $60 is a hold. The company (Toronto symbol TOU; Resources sector; Shares outstanding: 340.8 million; Market cap: $20.4 billion; Dividend yield: 1.9%; Takeover Target Rating: Medium; www.tourmalineoil.com) is a Canadian oil and natural gas exploration, development and production company....