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Spinoffs

They’re buys even if they defy activists

Activist investors tend to do a good job identifying ways that under-performing companies like Suncor and Alphabet can boost shareholder value. Even though they’re not always successful, those high-profile investors help draw attention to firms with already-good long-term prospects.

SUNCOR ENERGY INC....

2 min read

Pat McKeough

Spinoffs

Former spinoff attracts takeover offer

Canadian equipment auctioneering firm Ritchie Bros. recently agreed to acquire IAA Inc., a firm that Kar Auction Services spun off in June 2019. IAA salvages damaged vehicles and sells them through online auctions.

At the time of the split, we recommended IAA as a spinoff buy....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Yum China Holdings

YUM CHINA HOLDINGS INC. $57 is a buy for aggressive investors. The company (New York symbol YUMC; Consumer Sector; Shares outstanding: 418.4 million; Market cap: $23.8 billion; Dividend yield: 0.8%; Takeover Target Rating: Medium; www.yumchina.com) is China’s largest fast-food operator with 12,409 outlets, mainly under the KFC and Pizza Hut banners.

On November 1, 2016, Yum Brands Inc....

1 min read

Pat McKeough

Spinoffs

Split spurred IBM and soon Kyndryl

On November 3, 2021, IBM completed the spinoff of Kyndryl. That firm helps corporate and government clients manage their data centres. Investors received one Kyndryl share for every five IBM shares they hold.

The spinoff let IBM focus on its faster-growing cloud computing operations....

3 min read

Pat McKeough

Growth Stocks

Alcon benefits from long-term trends

Swiss pharmaceutical giant Novartis spun off Alcon in 2019. And 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 78% from its March 2020 low, but we think it can go much higher....

2 min read

Pat McKeough

Growth Stocks

New name & outlook

GEN DIGITAL INC., $22.99, is a buy. The company (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (www.nortonlifelock.com; Shares o/s: 661.0 million; Market cap: $15.3 billion; Divd. yield 2.2%) has changed its name from NortonLifeLock.

Gen will now act as the parent company for several security-related brands including Norton, LifeLock, and Avast, in addition to Avira, AVG, and CCleaner, which were obtained in previous acquisitions.

On September 12, 2022, then NortonLifeLock completed its acquisition of European cybersecurity firm Avast plc for $8.1 billion....

1 min read

Pat McKeough

Growth Stocks

DraftKings branches out into horse racing

DraftKings is down, along with tech-oriented/online-platform stocks that are still unprofitable. It has, in fact, fallen considerably since late 2021. Still, despite the share-price decline, we think the stock has a bright future ahead.

DRAFTKINGS INC., $13.55, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (www.draftkings.com; Shares o/s: 841.7 million; Market cap: $11.6 billion; No dividend) has entered into a multi-year agreement with Churchill Downs Inc....

1 min read

Pat McKeough

Growth Stocks

AltaGas offers growth and income

AltaGas took on a lot of risk with a huge U.S. acquisition in July 2018. But it stuck to its promise of selling non-core assets to pay down the debt it took on. At the same time, its regulated cash flows expanded. We still believe in this leader’s strong prospects and its outlook....

2 min read

Pat McKeough

Growth Stocks

Garmin wins a key aviation contract

GARMIN LTD., $95.79, is a buy. The company (Nasdaq symbol GRMN; TSINetwork Rating: Extra Risk) (Shares outstanding: 191.7 million; Market cap: $18.6 billion; Dividend yield: 3.1%) has now been selected by Archer Aviation Inc....

1 min read

Pat McKeough

Growth Stocks

Cannabis Corner: These stocks all have bright futures

Canada legalized cannabis four years ago. While demand has been steady, stiff competition has cut selling prices significantly. Meanwhile, advertising restrictions and plain packaging rules make it hard to build brands that win customer loyalty. Still, we think some companies have a distinct edge—including their prospects for added sales in the U.S....

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.