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Here’s our Spinoff Stock Portfolio for December 2023

You Can See Our Spinoff Stock Portfolio For December 2023 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....

1 min read

Pat McKeough

Spinoffs

Robot maker readies for IPO

RICHTECH ROBOTICS INC. has filed paperwork with U.S. regulators for an initial public offering (IPO) of common shares. The shares will trade on Nasdaq under the symbol RR.

Based in Las Vegas, Nevada, Richtech makes robotic equipment for restaurants, hotels, casinos and factories....

1 min read

Pat McKeough

Spinoffs

Keep on top of our stock updates

VF CORP. $18 is still a buy, but only for aggressive investors. The company (New York symbol VFC; Consumer sector; Shares outstanding: 388.7 million; Market cap: $7.0 billion; Dividend yield: 2.0%; 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....

2 min read

Pat McKeough

Spinoffs

Western Digital opts for a spinoff

Under pressure from activist investor Elliott Management, Western Digital will now break itself into two separate firms—one will make traditional computer hard drives, and the other will focus on flash memory products. (Manufacturers of mobile phones, digital cameras and other devices use flash chips to retain information without power.)

The company originally acquired flash chipmaker SanDisk in 2016 for $19.0 billion as part of a plan to diversify its operations.

However, integrating this new business was more difficult than it expected....

2 min read

Pat McKeough

Spinoffs

Corteva raises your dividend

CORTEVA INC. $47 is a buy. The company (New York symbol CTVA; Manufacturing sector; Shares outstanding: 704.7 million; Market cap: $33.1 billion; Dividend yield: 1.4%; Takeover Target Rating: Medium; www.corteva.com) makes seeds and crop-protection chemicals....

1 min read

Pat McKeough

Spinoffs

Mixed results for this three-way split

In 2019, the old DowDupont broke itself into three new firms—DuPont, Dow and Corteva (see box). Since then, Corteva is up over 70%, but Dow is down 1% and DuPont has dropped 14%. Even so, we still like the long-term prospects for all three. We see each as a buy.

DUPONT DE NEMOURS INC....

2 min read

Pat McKeough

Spinoffs

Allstate plans to sell small unit

ALLSTATE CORP. $132 is a hold. The company (New York symbol ALL; Finance sector; Shares outstanding: 261.7 million; Market cap: $34.5 billion; Dividend yield: 2.7%; Takeover Target Rating: Medium; www.allstate.com) is a leading provider of property and casualty, and other insurance products in the U.S....

1 min read

Pat McKeough

Spinoffs

These two targets need to cut their debt

Thanks to acquisitions, these two firms now carry high debt burdens. In response, activists want them to sell assets and pay down debt. We agree with the activists, but these two firms will probably resist their pressure.

GFL ENVIRONMENTAL INC....

2 min read

Pat McKeough

Spinoffs

Hold these two spinoffs for now

On October 16, 2023, the old NCR Corp. (New York symbol NCR) completed its plan to split itself into two separate firms. One (called NCR Atleos) will focus on ATMs, and the other (called NCR Voyix) will focus on digital commerce businesses.

Investors received one share of NCR Atleos for every two NCR shares they hold....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Warner Bros. Discovery Inc.

WARNER BROS. DISCOVERY INC. $11 is still a hold. The company (Nasdaq symbol WBD; Consumer sector; Shares outstanding: 2.4 billion; Market cap: $26.4 billion; No dividend paid; Takeover Target Rating: Medium; www.wbd.com) took its current form in April 2022 when AT&T merged its WarnerMedia business with Discovery Inc....

1 min read

Pat McKeough

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The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

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Investors Association of Canada
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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.