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Growth Stocks

BOSTON SCIENTIFIC, $54.10, is a buy. The company (New York symbol BSX; TSINetwork Rating: Average) (bostonscientific.com; Shares o/s: 1.5 billion; Market cap: $77.7 billion; No divds.) continues to add to its portfolio of medical devices used in minimally invasive procedures.

The company will now pay $850 million (plus future performance payments) to buy private medical tech company Relievant Medsystems....

1 min read

Pat McKeough

Growth Stocks

Adobe’s R&D helps it beat its rivals

This technology stock is up sharply in 2023—and it keeps moving toward the all-time high of $700 it hit in late 2021. But while the company now looks more expensive in relation to projected earnings and sales, we feel its strong position in key markets, and its high R&D spending, will continue to give it a competitive advantage and push its shares even higher....

2 min read

Pat McKeough

How To Invest

Here’s our Spinoff Stock Portfolio for October 2023

You Can See Our Spinoff Stock Portfolio For October 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

Arm is off to a good start

ARM HOLDINGS PLC ADR $53 is a hold. This U.K.-based company (Nasdaq symbol ARM; Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $58.3 billion; No dividend paid; Takeover Rating Target: Lowest; www.arm.com) is a leading designer of energy-efficient chips that power mobile devices....

1 min read

Pat McKeough

Spinoffs

Keep on top of stock updates

ARAMARK CORP. $38 is a buy. The company (New York symbol ARMK; Manufacturing sector; Shares outstanding: 261.1 million; Market cap: $9.9 billion; Dividend yield: 1.2%; Takeover Target Rating: Medium; www.aramark.com) plans to spin off its uniform business as a separate, publicly traded firm called Vestis....

2 min read

Pat McKeough

Spinoffs

You can profit from shift to e-commerce

On July 1, 2015, due to pressure from billionaire activist investor Carl Icahn, online auction firm eBay split off its electronic-payment business, PayPal, as a separate firm. Investors received one PayPal share for each eBay share they held.

Both stocks jumped during the pandemic as consumers embraced online shopping, but have moved down as stores re-opened....

2 min read

Pat McKeough

Spinoffs

This retailer remains vulnerable

VICTORIA’S SECRET & CO. $17 is a hold. The company (New York symbol VSCO; Consumer sector; Shares outstanding: 77.3 million; Market cap: $1.3 billion; No dividend paid; Takeover Target Rating: Medium; www.victoriassecretandco.com) took its current form in August 2021 when the old L Brands (New York symbol LB) became two separate firms: Victoria’s Secret (lingerie) and Bath & Body Works (personal care products)....

1 min read

Pat McKeough

Spinoffs

High debt loads hold them back

In the past few years, big pharmaceutical companies have spun off their consumer drug operations. That’s part of their strategy to focus on more-profitable prescription drug businesses. These two recent spinoffs have decent long-term prospects, but their shares will likely remain depressed until they cut their high debt loads.

VIATRIS INC....

2 min read

Pat McKeough

Spinoffs

Activist helped spur this takeover

AVANTAX INC. $26 is a hold. The company (Nasdaq symbol AVTA; Finance Sector; Shares outstanding: 36.8 million; Market cap: $956.8 million; No dividend paid; Takeover Target Rating: Highest; www.avantax.com) offers wealth management, insurance and tax planning services through roughly 3,100 advisors....

1 min read

Pat McKeough

Spinoffs

Hold onto them for a possible takeover

Activist investors often push companies to put themselves up for sale. Sometimes that works, such as the 30% premium that Avantax (see box) recently secured. In other cases, like Bloomin’ Brands and Hanesbrands, a takeover may never materialize.

BLOOMIN’ BRANDS INC....

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.