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Spinoffs

PARKLAND CORP. $32 is a hold. The company (Toronto symbol PKI; Consumer sector; Shares o/s: 175.4 million; Market cap: $5.6 billion; Dividend yield: 4.3%; Takeover Target Rating: Medium; www.parkland.ca) is a Calgary-based marketer, distributor, and refiner of fuel and petroleum products in Canada, the U.S....

2 min read

Pat McKeough

Spinoffs

Two REITs for spinoff gains and income

In January 2022, H&R REIT spun off most of its retail properties to Primaris REIT. Unitholders received one unit of Primaris for every four H&R units they held. At that time, H&R investors held 74% of Primaris, while the Healthcare of Ontario Pension Plan (HOOPP) owned the remaining 26%.

So far, H&R units are down about 8%, while Primaris is up slightly....

2 min read

Pat McKeough

Spinoffs

Kellogg scales back spinoff plan

KELLOGG COMPANY $67 is a hold. The company (New York symbol K; Consumer sector; Shares outstanding: 342.7 million; Market cap: $23.0 billion; Dividend yield: 3.5%; Takeover Target Rating: Medium; www.kelloggcompany.com) still plans to spin off its North American (U.S., Canadian, and Caribbean) cereal business....

1 min read

Pat McKeough

Spinoffs

Two new buys for spinoff investors

On April 4, 2023, industrial products maker Crane Holdings split into two separate companies—Crane Co. and Crane NXT. Investors received one share of Crane Co. for every share they held. Crane Holdings then changed its name to Crane NXT.

We expect both firms will benefit as they sharpen their focus on their main businesses....

2 min read

Pat McKeough

Spinoffs

Activist support will help Semtech

SEMTECH CORP. $22 is a hold. The company (Nasdaq symbol SMTC; Manufacturing & Industry sector; Shares outstanding: 63.9 million; Market cap: $1.4 billion; No dividend paid; Takeover Target Rating: Medium; www.semtech.com) makes chips and electronic devices for a wide variety of uses, such as managing wireless data signals and TV broadcast transmissions.

Semtech recently acquired wireless communications equipment Sierra Wireless Inc....

1 min read

Pat McKeough

Spinoffs

Activists want buyers for these two

We keep an eye on activist investors, as they tend to zero in on depressed companies that could unlock value with a spinoff or sale. Here are two firms that are now under activist pressure to sell themselves. While that may attract offers, we see better opportunities for your new buying.

ARCONIC CORP....

2 min read

Pat McKeough

Spinoffs

Talc settlements will help J&J rebound

Medical giant Johnson & Johnson is now in the process of spinning off its consumer products business. That will let it focus on its more risky, but potentially more profitable, prescription drugs and medical device businesses.

The stock has dropped 2% since the company announced that plan in November 2021....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Teck Resources

TECK RESOURCES LTD. $64 is a buy. The company (Toronto symbol TECK.B; Resources sector; Shares outstanding: 514.5 million; Market cap: $33.3 billion; Dividend yield: 0.8%; Takeover Target Rating: Lowest; www.teck.com) still plans to spin off its metallurgical coal operations as Elk Valley Resources Ltd....

1 min read

Pat McKeough

Spinoffs

XPO created three “pure-play” buys

Investors tend to embrace spinoffs as they create “pure-play” businesses that are easier to analyze and value.

For example, in the past two years, trucking firm XPO spun off its logistics operations and then its truck brokerage operations....

3 min read

Pat McKeough

How To Invest

Here’s our Power Recommendations Portfolio for May 2023

You Can See Our Current Power Recommendations For May 2023 here.

Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now....

1 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.