Topics

Spinoffs

PRIMO WATER CORP. $15 is a buy. The company (New York symbol PRMW; Manufacturing sector; Shares outstanding: 159.9 million; Market cap: $2.4 billion; Dividend yield: 2.1%; Takeover Target Rating: Medium; www.primowatercorp.com) provides multi-gallon jugs of purified water, water dispensers, and refilling stations across Canada and the U.S.

In March 2020, Cott Corporation acquired the company and changed its name to Primo Water.

Activist investor Legion Partners Asset Management, which owns 1.5% of Primo’s shares, wants the company to expand its customer base and earnings with several initiatives....

1 min read

Pat McKeough

Spinoffs

Their risk remains high despite deals

These two firms recently settled with activist investors. While that lets them avoid a lengthy proxy war, we feel their shares will remain under pressure as the economy stalls.

FIRST CAPITAL REALTY INC. $16 is a hold. This real estate investment trust (Toronto symbol FCR.UN; Manufacturing sector; Units outstanding: 213.5 million; Market cap: $3.4 billion; Dividend yield: 5.4%; Takeover Target Rating: Medium; www.fcr.ca) owns, develops and operates shopping centres throughout Canada....

2 min read

Pat McKeough

Spinoffs

Top brands add to their appeal

In October 2019, Post sold shares of its BellRing Brands business to the public through an IPO. BellRing makes protein bars, shakes and nutritional supplements. On March 10, 2022, Post distributed its remaining 80.1% stake in that business to its shareholders....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: IAA Inc.

IAA INC. $40 is a hold. The company (New York symbol IAA; Manufacturing & Industry sector; Shares outstanding: 133.9 million; Market cap: $5.4 billion; No dividend paid; Takeover Target Rating: Highest; www.iaai.com) salvages damaged vehicles and sells them through online auctions.

In June 2019, KAR Auction Services Inc....

1 min read

Pat McKeough

Spinoffs

Teck shifts focus to ‘green’ metals

Mining firm Teck Resources recently announced that it will spin off its metallurgical coal (used for making steel) operations. It also recently sold its stake in an oil sands project.

These moves are part of its plan to focus on “low carbon metals,” particularly copper and zinc....

4 min read

Pat McKeough

How To Invest

Q: Thanks for all your advice over the last few years. What’s your recommendation on Worthington Industries? Thanks.

A: Worthington Industries Inc., $54.71, symbol WOR on New York (Shares outstanding: 49.7 million; Market cap: $2.8 billion; Manufacturing sector; TSINetwork Rating: Extra Risk; www.worthingtonindustries.com), is an industrial manufacturing company that provides value-added steel processing as well as consumer, building and energy products.

The company currently has four operating segments: Steel Processing (75% of sales), Consumer Products (12%), Building Products (10%), and Sustainable Energy Solutions (3%).

Steel Processing focuses on value-added processing, laser welding solutions, and laminations for the rapidly growing electrical steel market....

3 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of March 14, 2023

For 2023, we once again chose CGI Inc. as the #1 Aggressive Stock of the Year for our flagship newsletter, The Successful Investor.

This is the seventh year in a row that we’ve picked CGI—Canada’s largest provider of computer outsourcing services.

Investors who were quick to act on our advice have not been disappointed: the stock is now up over 123% since we first highlighted it as a top pick for 2016....

10 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, March 10, 2023

UTZ BRANDS INC., $16.64, symbol UTZ on New York, is a Pennsylvania-based maker of salty snacks. Its brands include Utz Original potato chips, On the Border Chips & Dips, Zapp’s, Good Health, Boulder Canyon, Tortiyahs, and others.

Founded in 1921, Utz began trading on the New York exchange in June 2020.

Rather than list through an IPO, the company undertook a reverse merger with Collier Creek Holdings....

8 min read

Pat McKeough

How To Invest

Power Growth Investor Hotline – Friday, March 10, 2023

WAJAX CORP., $24.93, is a buy. Through their shares, investors benefit from the company’s (symbol WJX on Toronto) sales and servicing of cranes, forklifts and other heavy equipment. Wajax also provides related parts and systems such as ball bearings, hoses, diesel engines and transmissions.

The company’s customers are spread across the resources, construction, manufacturing and transportation industries.

In the quarter ended December 31, 2022, overall revenue climbed 34.4%, to $541.3 million from $402.8 million a year earlier....

7 min read

Pat McKeough

How To Invest

Dividend Advisor Hotline – Friday, March 10, 2023

TORONTO-DOMINION BANK, $83.77, Toronto symbol TD, is a buy.

The lender raised your quarterly dividend with the January 2023 payment by 7.9%. Investors now receive $0.96 a share instead of $0.89. The new annual rate of $3.84 yields a high 4.6%.

In March 2022, TD agreed to acquire U.S....

8 min read

Pat McKeough

Testimonials

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.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

Walter H.
Inner Circle Pro subscriber

Browse Premium Topics

Cannabis

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.