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Business conditions due to COVID-19 hurt Wajax Corp.'s results in 2021. However, volumes improved steadily through the end of 2022; and now into 2023, customer activity continues to increase.

WAJAX CORP., $22.71, is a buy. Through their shares, investors benefit from the company’s (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (www.wajax.ca; Shares outstanding: 21.4 million; Market cap: $473.2 million; Dividend yield: 5.8%) sales and servicing of cranes, forklifts and other heavy equipment....

1 min read

Pat McKeough

Growth Stocks

Big drug trial for Lilly

ELI LILLY & CO., $437.47, is a #1 Power Buy for 2023. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 949.3 million; Market cap: $414.5 billion; Dividend yield: 1.3%) rose to new all-time highs recently after its experimental Alzheimer’s drug, donanemab, slowed cognitive decline by 35% in a closely watched late-stage trial.

The results raise hopes for an effective treatment for the brain-wasting disease.

Based on the new data, Lilly plans to apply this quarter to the U.S....

1 min read

Pat McKeough

Growth Stocks

Long-term trends boost Alcon

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.

The stock is already up over 99% from its March 2020 low, but we think it can go much higher....

2 min read

Pat McKeough

How To Invest

Here’s our Spinoff Stock Portfolio for June 2023

You Can See Our Spinoff Stock Portfolio For June 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

This IPO taps renewable energy

SOLARMAX TECHNOLOGY INC. sells and installs solar panels and battery-backup systems to residential and commercial customers in the U.S. It also operates solar power projects in China.

The company has filed paperwork with U.S. regulators for an initial public offering (IPO) of up to 8.625 million common shares at an expected price of $4.00 a share....

1 min read

Pat McKeough

Spinoffs

Keep on top of our stock updates

ARCONIC CORP. $29 is a hold. This company (New York symbol ARNC; Manufacturing & Industry sector; Shares outstanding: 105.8 million; Market cap: $3.1 billion; No dividend paid; Takeover Target Rating: Highest; www.arconic.com) makes rolled aluminum products.

On April 1, 2020, the old Arconic Inc....

2 min read

Pat McKeough

Spinoffs

These spinoffs continue to impress

In April 2020, Raytheon Technologies Corp. (New York symbol RTX) spun off Carrier and Otis as separate companies. For each share they held, investors received 0.5 of a share in Otis and 1 share in Carrier.

So far, Carrier has soared over 190%, while Otis has gained an impressive 90%....

2 min read

Pat McKeough

Spinoffs

BlackBerry ponders a breakup

BLACKBERRY LTD. $7.22 is a hold. The company (Toronto symbol BB; Manufacturing sector; Shares outstanding: 582.2 million; Market cap: $4.2 billion; No dividend paid; Takeover Target Rating: Medium; www.blackberry.com) quit developing smartphones in 2016 to concentrate on security software for mobile phones and self-driving cars.

Blackberry recently agreed to sell 32,000 of its less-important patents and patent applications to a unit of Key Patent Innovations Ltd....

1 min read

Pat McKeough

Spinoffs

We like these medical spinoffs

A key benefit of spinoffs is the creation of pure-play firms that focus on a narrow market. Here are two medical-related spinoff situations that should benefit their investors for years to come.

LABORATORY CORPORATION OF AMERICA, or LABCORP, $217 is a spinoff buy. The company (New York symbol LH; Manufacturing sector; Shares outstanding: 90.4 million; Market cap: $19.6 billion; Dividend yield: 1.3%; Takeover Target Rating: Medium; www.labcorp.com) provides clinical laboratory services from locations throughout North America....

2 min read

Pat McKeough

Spinoffs

Bath & Body settles with activist

BATH & BODY WORKS INC. $34 is a spinoff buy. The retailer of personal care and beauty products (New York symbol BBWI; Consumer sector; Shares outstanding: 228.4 million; Market cap: $7.8 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.bbwinc.com) was formerly called L Brands (old New York symbol LB) split into two separate firms in August 2021: Victoria’s Secret and Bath & Body Works....

1 min read

Pat McKeough

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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.