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Spinoffs

VF CORP. $28 is still a buy for long-term gains. The company (New York symbol VFC; Consumer sector; Shares outstanding: 388.7 million; Market cap: $10.9 billion; Dividend yield: 4.3%; Takeover Target Rating: Medium; www.vfc.com) is one of the world’s largest apparel suppliers and a leader in the outdoor, sportswear, and workwear markets....

1 min read

Pat McKeough

Spinoffs

Stick with a proven value creator

Spinoffs remain a great way for companies to unlock value for investors. That’s why we still like Danaher, which is moving ahead with its third spinoff in seven years. On the other hand, Ammo recently suspended its spinoff plan, which further clouds its already poor outlook.

DANAHER CORP....

2 min read

Pat McKeough

Spinoffs

Poison pill limits takeover potential

NORDSTROM INC. $22 is a hold. The retailer (New York symbol JWN; Consumer sector; Shares outstanding: 166.2 million; Market cap: $3.7 billion; Dividend yield: 3.4%; Takeover Target Rating: Medium; www.nordstrom.com) owns and operates over 350 stores in the U.S....

1 min read

Pat McKeough

Spinoffs

We disagree with their activist investors

These two technology-focused firms have struggled in the past year. But, their shares have moved up lately as activists push for changes meant to lift their earnings. Still, these firms don’t yet inspire our confidence. Here’s why.

SALESFORCE INC....

2 min read

Pat McKeough

Spinoffs

More pure-play picks for COVID recovery

It bears repeating: spinoffs let companies narrow their focus to their core businesses. That pleases investors, as they prefer “pure play” firms that are easier to value.

A good example is cardboard maker WestRock, which spun off its Ingevity chemical business in 2016 to create two pure-play firms....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Becton Dickinson

BECTON DICKINSON & CO. $244 is a buy. The medical device maker (New York symbol BDX; Manufacturing sector; Shares outstanding: 283.9 million; Market cap: $69.3 billion; Dividend yield: 1.5%; Takeover Target Rating: Medium; www.bd.com) spun off its Diabetes Care business in April 2022 as embecta Corp....

1 min read

Pat McKeough

Spinoffs

Breakup has created three solid buys

In 2019, the old DowDuPont (New York symbol DWDP) split itself into three separate, more-focused companies—DuPont, Dow and Corteva.

All three are up since the split, as investors prefer pure-play companies over conglomerates that hold a variety of businesses....

3 min read

Pat McKeough

How To Invest

I am looking for your advice on whether to buy PPG Industries. I have followed your sound advice for a long time. Thanks.

A: PPG Industries Inc., $129.69, symbol PPG on New York (Shares outstanding: 235.0 million; Market cap: $30.5 billion; Manufacturing sector; TSINetwork Rating: Average; www.ppg.com), is the world’s largest producer of coatings and paints for the automotive, aerospace, construction, and industrial markets....

3 min read

Pat McKeough

How To Invest

Pat, what are your current views on Baytex Energy Corp. (BTE)? Oil and gas is going to be needed well into the future. I think Baytex has a long runway. What is your view? Is Baytex a buy, hold or sell? Thank you.

A: Baytex Energy Corp., $6.08, symbol BTE on Toronto (Shares outstanding: 544.9 million; Market cap: $3.3 billion; Resources sector; TSINetwork Rating: Extra Risk; www.baytexenergy.com), explores for, develops and produces oil and gas in Western Canada and in the Eagle Ford, Texas region of the U.S....

1 min read

Pat McKeough

How To Invest

May I get your latest advice on Deere & Co. (DE)? Thanks, Pat, for all your advice.

A: Deere & Co., $407.65, symbol DE on New York (Shares outstanding: 298.2 million; Market cap: $121.6 billion; Manufacturing & Industry sector; TSINetwork Rating: Above Average; www.deere.com), started up in 1837 when its founder, John Deere, began making polished-steel plows at his blacksmith shop in Grand Detour, Illinois.

Today, the company is the world’s largest maker of agricultural equipment, with manufacturing plants in the U.S., Canada, France, Germany, Spain, South Africa, Mexico and Argentina....

4 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.