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Spinoffs

In October 2019, foodmaker Post sold shares of its BellRing Brands business to the public through an IPO. BellRing makes protein bars, shakes and nutritional supplements. On March 10, 2022, Post distributed its remaining 80.1% stake in that business to its shareholders....

2 min read

Pat McKeough

Spinoffs

Spinoff creates two pure-play firms

MDU RESOURCES GROUP INC. $20 is a hold. The company (New York symbol MDU; Utilities sector; Shares outstanding: 203.6 million; Market cap: $4.1 billion; Dividend yield: 2.6%; Takeover Target Rating: Medium; www.mdu.com) generates and distributes electrical power to residential and commercial customers in Montana, North Dakota, South Dakota, and Wyoming....

1 min read

Pat McKeough

Spinoffs

Former parent has better prospects

On August 3, 2021, the old L Brands holding company (old New York symbol LB) split into two separate firms: Victoria’s Secret and Bath & Body Works. Investors received one new share of Victoria’s Secret for every three shares of L Brands they held. L Brands then changed its name to Bath & Body Works.

Both stocks are now down about 40% since the split....

2 min read

Pat McKeough

Spinoffs

Wendy’s attracts two activists

WENDY’S CO. $20 is a hold. The company (Nasdaq symbol WEN; Consumer sector; Shares outstanding: 214.3 million; Market cap: $4.3 billion; Dividend yield: 5.0%; Takeover Target Rating: Medium; www.wendys.com) is a leading quick-service restaurant chain with more than 7,000 locations worldwide....

1 min read

Pat McKeough

Spinoffs

We agree with Elliott on these two

Activist investor Elliott Investment Management is now targeting two firms it feels could boost shareholder value with asset sales or spinoffs. We agree with its proposals, and see both stocks as attractive buys.

CROWN CASTLE INTERNATIONAL CORP....

2 min read

Pat McKeough

Spinoffs

Nine years later, we still like both

In November 2014, Agilent spun off its electronic testing equipment business as Keysight Technologies. Agilent shareholders received one Keysight share for every two shares they held.

While both stocks have dropped lately, they remain terrific examples of why spinoffs are the closest thing you can find to a sure thing....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Blackberry

BLACKBERRY LTD. $5.75 is a hold. The software maker (Toronto symbol BB; Manufacturing sector; Shares outstanding: 584.4 million; Market cap: $3.4 billion; No dividend paid; Takeover Target Rating: Medium; www.blackberry.com) cancelled its plan to sell about 20% of the shares in its Internet of Things business, which includes its QNX software for automobiles, through an initial public offering....

1 min read

Pat McKeough

Spinoffs

Look out for more possible spinoffs

In the past few years, many well-established conglomerates, such as General Electric and Danaher, have spun off some of their smaller businesses to help eliminate a “holding company discount.”

Honeywell did the same in October 2018, spinning off its building products business (called Resideo)....

3 min read

Pat McKeough

How To Invest

Q: Pat, what is your opinion of Canadian General Investments (CGI)? Thank you.

A: Canadian General Investments Ltd., $34.06, symbol CGI on Toronto (Units outstanding: 20.9 million; Market cap: $710.5 million; www.mmainvestments.com), is a closed-end fund that mainly invests in shares of Canadian companies that it sees as average or above-average in quality.

Established in 1930, it is one of the oldest closed-end funds in North America....

3 min read

Pat McKeough

How To Invest

Q: Pat: What is your view about the Savers Value Village IPO? Thanks for all your sensible advice.

A: Savers Value Village Inc., $15.71, symbol SVV on New York (Shares outstanding: 160.5 million; Market cap: $2.6 billion; www.savers.com), is the largest for-profit thrift operator in the U.S....

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.