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Spinoffs & Takeovers Hotline – Friday, April 29, 2022

GENERAC HOLDINGS INC., $219.38, symbol GNRC on New York, designs and manufactures a wide range of generators and other engine-powered products for the residential, light commercial, industrial, and construction markets. Its products are fuelled by natural gas, liquid propane and diesel.

Generac also pioneered the residential power washer category, putting the power to clean into the hands of homeowners....

11 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: Diebold Nixdorf, NCR & Idexx Laboratories

DIEBOLD NIXDORF INC. $4.31 (www.dieboldnixdorf.com) is still a hold, but only for aggressive investors. The company is the world’s biggest maker of automated teller machines (ATMs). Diebold has suspended shipments and sales to clients in Russia as a result of that country’s invasion of Ukraine....

1 min read

Pat McKeough

Mining Stocks

Hedge your inflation risk with Newmont

Gold prices are up about 5% since the start of 2022 due to rising inflation and uncertainty caused by the war in Ukraine. We feel the best way to profit from higher gold prices is to buy high-quality producers like Newmont. Most of its mines are in politically stable countries, and its dividend is linked to the price of gold.

NEWMONT CORP....

2 min read

Pat McKeough

Growth Stocks

Cisco rewards investors

CISCO SYSTEMS INC. $49 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.2 billion; Market cap: $205.8 billion; Price-to-sales ratio: 4.2; Dividend yield: 3.1%; TSINetwork Rating: Average; www.cisco.com) makes hardware and software to link computer networks.

Cisco raised your quarterly dividend by 2.7% with the April 2022 payment....

1 min read

Pat McKeough

Value Stocks

Three more updates you need to know

NORDSTROM INC. $26 remains a hold. The company (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 157.8 million; Market cap: $4.1 billion; Price-to-sales ratio: 0.3; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.nordstrom.com) owns and operates over 350 stores in the U.S....

2 min read

Pat McKeough

Growth Stocks

Sale fuels big buyback plan

STANLEY BLACK & DECKER INC. $139 is a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 163.4 million; Market cap: $22.7 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.3%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools for consumers.

Stanley will now sell its automatic doors business, Access Technologies, to Allegion plc (New York symbol ALLE) for $900 million....

1 min read

Pat McKeough

Energy Stocks

Refineries make Chevron the better pick

Chevron and APA have surged to record highs in 2022 thanks to rising crude oil prices. Both are using their extra cash flow to raise their dividends and buy back shares. However, Chevron is the better choice as its refineries will benefit when oil prices eventually weaken.

CHEVRON CORP....

2 min read

Pat McKeough

Growth Stocks

Look for PayPal to rebound

PAYPAL HOLDINGS INC. $83 is a buy, but only for highly aggressive investors. The company (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares o/s: 1.2 billion; Market cap: $99.6 billion; Price-to-sales ratio: 4.0; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions on millions of websites, including purchases made on eBay, its former parent company....

1 min read

Pat McKeough

Growth Stocks

Top lenders rely on these service providers

These stocks are a good way for investors to diversify their Finance sector holdings beyond the big banks. Both provide vital services to other lenders and firms, which helps cut your risk.

STATE STREET CORP. $67 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 367.1 million; Market cap: $24.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 3.4%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans....

2 min read

Pat McKeough

Growth Stocks

Higher military spending lifts RTX

RAYTHEON TECHNOLOGIES CORP. $99 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $148.5 billion; Dividend yield: 2.2%; Price-to-sales ratio: 2.3; TSINetwork Rating: Above Average; www.rtx.com) took its current form on April 3, 2020, with the merger of United Technologies Corp....

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.