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You should remain wary of stocks that attract broker/media praise for their 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:
CAVA GROUP, $33.78, (New York symbol CAVA; TSI Rating: Extra Risk) (www.cava.com; Shares o/s: 113.6 million; Market cap: $3.8 billion; No divds.) is a U.S....
CAVA GROUP, $33.78, (New York symbol CAVA; TSI Rating: Extra Risk) (www.cava.com; Shares o/s: 113.6 million; Market cap: $3.8 billion; No divds.) is a U.S....
Canada legalized cannabis over four 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....
EXTENDICARE INC., $6.08, is a buy. The company (Toronto symbol EXE; TSINetwork Rating: Extra Risk) (www.extendicare.com; Shares outstanding: 84.3 million; Market cap: $512.5 million; Dividend yield: 7.9%) continues to pay monthly distributions of $0.04 a share; the annual rate of $0.48 yields a very high 7.8%.
In the most recent quarter, the company’s revenue rose 3.7% in the quarter, to $307.5 million from $296.6 million a year earlier....
We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. At the same time, over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think AbbVie—itself a spinoff—has further gains ahead for investors. We recommend this stock as a Power Buy.
ABBVIE INC., $149.28, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $268.7 billion; Dividend yield: 4.0%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies.
Since its spinoff from Abbott Laboratories, AbbVie has depended heavily on its Humira drug to drive both its sales and earnings....
Disney will make a huge investment in its most lucrative business. The parks, experiences and products segment accounts for a third of the company’s revenue; it contributes a whopping 80% of its operating profits.
WALT DISNEY CO., $84.68, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (Shares o/s: 1.8 billion; Market cap: $152.4 billion; No dividend) now plans to spend $60 billion over the next 10 years in a major expansion of its theme parks, products and cruise line business....
AMAZON.COM INC., $128.13, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares outstanding: 10.3 billion; Market cap: $1.3 trillion; No dividends paid) has just agreed to invest up to $4 billion in privately held artificial-intelligence company Anthropic; it will take a minority ownership position, committing an initial $1.25 billion....
Alimentation Couche-Tard not only adapted to the pandemic, it thrived—and the shares are now trading near their recent all-time high. All in all, we think this retailer is well-positioned to keep prospering in both its core and new markets, including by acquisition....
You Can See Our Spinoff Stock Portfolio For November 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....
BIRKENSTOCK HOLDING PLC. $39 is a hold. This U.K.-based company (New York symbol BIRK; Consumer sector; Shares outstanding: 187.8 million; Market cap: $7.3 billion; No dividends paid; Takeover Target Rating: Lowest; www.berkenstock-holding.com) is an iconic footwear maker whose history dates back to 1774.
On October 11, 2023, the company completed a initial public offering of 32.3 million ordinary shares at $46.00 a share....
On October 11, 2023, the company completed a initial public offering of 32.3 million ordinary shares at $46.00 a share....
TRISURA GROUP LTD. $31 remains a buy for aggressive investors. The company (Toronto symbol TSU; Finance Sector; Shares outstanding: 47.4 million; Market cap: $1.5 billion; No dividend paid; Takeover Target Rating: Medium; www.trisura.com) took its current form on June 22, 2017, when Brookfield Asset Management Inc....