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Spinoffs

Automotive oil maker Valvoline, itself a spinoff from Ashland Global Holdings, now plans to break up into two separate firms—one focused on quick oil change facilities, and one that sells products through retail stores. Investors should also benefit as Valvoline targets the emerging electric vehicle (EV) market for new growth....

2 min read

Pat McKeough

Spinoffs

This acquisition holds promise

RESIDEO TECHNOLOGIES INC. $27 is a spinoff buy. The company (New York symbol REZI; Manufacturing & Industry sector; Shares o/s: 145.0 million; Market cap: $3.9 billion; No dividends paid; Takeover Target Rating: Medium; www.resideo.com) makes heating, ventilation and air-conditioning equipment....

1 min read

Pat McKeough

Spinoffs

Expect these recent spinoffs to recover

New spinoffs often struggle for a period, partly because investors tend to dump their new shares. We think that’s why Kyndryl and Viatris are down since they became separate companies. Still, we believe both will eventually move higher, and we see each of them as a hold.

KYNDRYL HOLDINGS INC....

2 min read

Pat McKeough

Spinoffs

Pressure should spur Huntsman

HUNTSMAN CORP. $40 is a buy. The company (New York symbol HUN; Manufacturing & Industry sector; Shares outstanding: 214.4 million; Market cap: $8.6 billion; Dividend yield: 2.2%; Takeover Target Rating: Medium; www.huntsman.com) is a leading producer of specialty chemicals for makers of adhesives, textiles, construction materials, paints, detergents and automotive products.

Hedge fund Starboard Value, which owns an 8.2% stake in Huntsman, now aims to place four of its representatives on the company’s board of directors.

In response, Huntsman now plans to sell its slower-growing textile effects division, which accounts for 6% of its total sales....

1 min read

Pat McKeough

Spinoffs

Pass on these two activist targets

Activist investors seek out the same hidden assets we look for, including assets that can be sold or spun off. However, we don’t agree with their assessment of these two targets.

HARLEY-DAVIDSON INC. $39 is a hold. The company (New York symbol HOG; Manufacturing & Industry sector; Shares outstanding: 153.9 million; Market cap: $6.0 billion; Dividend yield: 1.7%; Takeover Target Rating: Medium; www.harley-davidson.com) is an American manufacturer of motorcycles, parts, accessories, and merchandise.

The company has now entered into a co-operation agreement with investment firm H Partners Management, which owns roughly 8% of the shares....

2 min read

Pat McKeough

Spinoffs

DuPont still adding value for investors

Shares of Chemicals-maker DuPont have moved mostly sideways since the company spun off two of its smaller businesses in 2019. However, DuPont is now shifting its focus to more-profitable fields such as electronics, water, industrial technologies, protection, and next-generation automotive technology....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: International Paper & Sylvamo

INTERNATIONAL PAPER CO. $44 is a spinoff buy. The company (New York symbol IP, Manufacturing & Industry sector; Shares outstanding: 376.4 million; Market cap: $16.6 billion; Dividend yield: 4.4%; Takeover Target Rating: Medium; www.internationalpaper.com) is a leading provider of cardboard packaging and related products.

In October 2021, it spun off its printing papers business as a separate company called SYLVAMO CORP....

1 min read

Pat McKeough

Spinoffs

Keep an eye on 3M for more spinoffs

3M’s shares are down 18% since the start of 2022. The decline is partly due to legal issues involving earplugs that the company manufactured for the U.S. Army. There are now more than 280,000 lawsuits filed against 3M. Of 11 trials to date, juries have sided with the plaintiffs six times, and with 3M five times.

We feel the company will eventually settle these lawsuits....

4 min read

Pat McKeough

How To Invest

Q: Thanks, TSI, for all the sound advice! What is your recommendation on consumer stock Church & Dwight?

A: Church & Dwight Co. Inc., $97.31, symbol CHD on New York (Shares outstanding: 242.7 million; Market cap: $23.5 billion; www.churchdwight.com), is a manufacturer of leading personal care, household, and specialty products.

Founded in 1846, the company is the leading U.S....

1 min read

Pat McKeough

How To Invest

Q: Pat, would it be possible to get an opinion on Procore Technologies? Thank you.

A: Procore Technologies Inc., $51.36, symbol PCOR on New York (Shares outstanding: 135.1 million; Market cap: $6.7 billion; www.procore.com) is a leading cloud-based construction management software provider.

Procore’s software platform aims to let all parties in a construction project communicate with each other and manage workflows more effectively....

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.